Telefónica disposes of its assets in Guatemala and El Salvador

Telefónica Centroamérica Inversiones agrees to sell Telefónica Guatemala and El Salvador to América Móvil for 570 million euros.

Telefónica Central America Investments, a company owned, directly and indirectly, 60% by Telefónica and 40% by Multi Investment Corporation, has reached an agreement with América Móvil for the sale of the entire share capital of its subsidiaries in Guatemala and El Salvador.

The aggregate transaction amount for both companies is 648 million US dollars (approximately 570 million euros at the current exchange rate, 293 million euros corresponding to Telefónica Guatemala and 277 million euros to Telefónica El Salvador) which implies an implicit multiple for the total amount of the transaction of approximately 9.7 times the estimated 2018 OIBDA of the two companies.

The capital gain before taxes and minorities is estimated to amount to approximately 120 million euros, mainly attributable to Telefónica El Salvador.

With the sale of both subsidiaries to Mexican businessman Carlos Slim, Telefónica aims to reduce debt and strengthen its balance sheet organically in a scenario of growing cash generation, which would at the same time maintain sustainable and attractive shareholder remuneration.