Telefonica struck a €200 million deal to sell a controlling stake in its fibre network in Colombia to investment company KKR, as part of the operator’s ongoing push to cut debt.
Through the sale, Telefonica Colombia will partner with KKR to implement an ambitious FTTH network network which the operator said would benefit all players in the country. The network will target rollout of FTTH to nearly 90 cities in the next three years.
The make-up of the partnership will see KKR hold a 60 per cent stake in the new company, while Telefonica Colombia will retain a 40 per cent holding. The operator will be tasked with contributing its existing infrastructure, which covered 50 cities and 1.2 million homes at end-Q1.
Telefonica and KKR’s transaction values the new entity at $500 million, and the operator will receive a payment of $200 million.
It will add to recent moves by Telefonica to cut its debt load, following a major deal to sell its European tower unit earlier this year, raising €6.2 billion.
Currently, Telefonica Colombia has more than 380,000 customers using its fibre service, which hits speeds of up to 500MB.
Laura Abasolo, general director of finance, control and corporate development at Telefonica, said the agreement was “another step” in the path the operator set out in the region to “ensure profitable growth”.Subscribe to our daily newsletter Back