Millicom inked a binding agreement with Telefonica for the purchase of a majority stake in the Spanish operator group’s Colombia business, more than seven months after the pair announced they were in talks over a $400 million deal.

Under the terms of the agreement, Millicom will buy Telefonica’s 67.5 per cent stake in Coltel and offer the same price per share for equity owned by the country’s ministry of finance and other stakeholders.

In a statement, Millicom explained the purchase price of $400 million announced when negotiations commenced was subject to adjustments related to debt, working capital and foreign exchange rates. It noted on figures from the end of September 2024 the price would be $362 million.  

The deal is subject to regulatory clearance. Should it go through, Millicom intends to combine Telefonica Colombia with its existing operation in the country.

Millicom CEO Marcelo Benitez said the transaction “strengthens our presence in Colombia and with this strategic move, Millicom reaffirms its ongoing commitment to expanding connectivity and coverage, accelerating digital transformation, and actively contributing to Colombia’s continued growth and competitiveness”.

In a stock market statement, Telefonica noted the deal is part of its “asset portfolio management policy and is aligned with its strategy of gradually reducing exposure in Hispanoamerica”.

The binding agreement on Colombia follows a period of intense media speculation over the future of Telefonica’s assets in Latin America, with reports linking it to attempts to exit a number of markets.

In February, it struck a deal to sell its unit in Argentina for $1.2 billion.