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HomeArchiveSpanish firm Telefónica sells 40 percent of its assets in the region

Spanish firm Telefónica sells 40 percent of its assets in the region

MADRID, Spain – Spanish telecommunications group Telefónica announced Tuesday the selling of 40 percent of its assets in Guatemala, El Salvador, Nicaragua and Panama, for a total of $500 million dollars, the company said in a press release.

The agreement does not include the company’s operations in Costa Rica, which began under the trademark Movistar in November 2011 and is backed by the parent company in Spain.

Telefónica will also receive a variable fee of up to $72 million for the sale, “which will be determined by the evolution of such assets in coming years,” the release said.

The firm plans to reduce his debt from 51 billion euros in 2012 to 47 billion euros by the end of this year, and it announced in 2011 a restructuring plan that included, among other measures, reducing by 20 percent its workforce in Spain.

Telefónica offers services such as fixed telephone, broadband and mobile in Central America. The company’s revenue last year increased 24 percent to 672 million euros, while operating income before depreciation and amortization fell 15 percent to 140 million euros.

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