Telefonica is set to move the headquarters for its Latin American business to Brazil from Spain next year, as it moves toward an initial public offering of this unit.
According to Reuters, around 100 staff will be taken on at the new centre.
The news comes after reports that the Spanish giant is considering listing its Latin American units, including its Brazil and Mexico operations, on the US stock market.
It is looking to raise cash from its existing assets in order to reduce its debt burden, and recently listed around a quarter of its O2 Germany operation.
By splitting out the Latin American unit, Telefonica will be able to “protect itself from any further worsening of Spain’s economic troubles”, the Wall Street Journal said recently, while enabling it to benefit from easier financing for its high-growth units.
Latin America was identified as a growth driver by Telefonica in its most recent results release, with quarterly revenue for this unit exceeding its sales from its core European operations.