Telefonica weighs $1B data centre asset sale - Mobile World Live

Telefonica weighs $1B data centre asset sale

06 NOV 2018

Telefonica is reportedly mulling the sale of its data centres, a move which could fetch up to $1 billion, as it considers options to reduce debt.

Bloomberg reported the Spain-based telecoms group is working with financial advisers to identify potential buyers, which includes private equity funds and infrastructure giants that currently run data centres.

Sources told the news website a sale of Telefonica’s data centres, which are located in Spain, the US and Latin America, could fetch between $500 million to $1 billion, depending on which assets are sold.

Bloomberg added a potential sale was in an early review phase and it could still be abandoned.

In the company’s most recent earnings report, Telefonica said debt fell for a sixth consecutive quarter, but still stood at €42.6 billion.

Telefonica has also been linked to other asset sales, particularly in Latin America, but has put off long-running plans to float its UK O2 unit.

A sale of Telefonica’s data centres would follow something of an industry trend after US operators AT&T and Verizon both sold off some similar assets in recent years.



Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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