Telefónica sells its Chilean subsidiary to the fund of businessman Xavier Niel and to the operator Millicom for as much as 1,156 million | Companies | EUROtoday

Telefónica takes one other step in its divestment technique in Latin American international locations, after simply 4 days in the past it finalized its definitive exit from Colombia for nearly 200 million euros. The Spanish telecom firm has bought 100% of the share capital of Telefónica Chile to the funding agency NJJ, the funding automobile of businessman Xavier Niel, and to the telecommunications operator Millicom, for an quantity of 1,215 million US {dollars} (1,030 million euros) and an extra cost of 150 million {dollars} (126 million euros on the present change fee), conditional on sure occasions in Chilean telecommunications. In complete, the worth of the operation might quantity to 1,156 million euros. The internet monetary debt of Telefónica Chile, as of December 31, 2025, was 479 million euros. Telefónica’s inventory has barely modified after making the sale public, with a remaining drop of simply 0.17%.

NJJ is the non-public funding automobile of the French businessman Xavier Niel, and may have 51% of the capital of the joint agency, whereas Millicom, whose first shareholder with 40% of the capital can also be Niel by Atlas Investissement, may have 49%. Millicom is the proprietor of the Iliad telecom group. NJJ, for its half, is a majority shareholder in the actual property firm Unibail-Rodamco-Westfield, has investments in rising expertise corporations and has co-founded Mediawan, the primary European impartial manufacturing studio.

In this manner, whereas Telefónica withdraws from sure markets in America, the telecom firm Milicom positive aspects floor. Millicom, which operates in Latin America underneath the Tigo model, closed a couple of days in the past the acquisition of its subsidiary in Colombia from Telefónica. The telecom firm has additionally acquired Telefónica companies in Ecuador and Uruguay.

According to the phrases of the settlement, on the closing of the operation in Chile, Telefónica should contribute 92 million {dollars} “which will be used to satisfy certain payments and ensure the stability of the balance,” Milicom says in a press release.

For Telefónica, the sale of the Chile enterprise is framed “within the asset portfolio management policy of the Telefónica Group, and is aligned with its exit strategy from Latin America,” the operator has acknowledged in a related truth despatched to the markets regulator, the CNMV. The goal of the corporate’s president, Marc Murtra, is to give attention to its 4 foremost markets: Spain, Brazil, Germany and the United Kingdom. In this context of rising in markets thought-about fundamental, a couple of days in the past, it was discovered that the Spanish telecom and its accomplice Liberty Global, shareholders within the United Kingdom of Virgin Media O2, are finalizing a significant operation within the British market, with the acquisition of Netomnia, the fourth largest fiber community operator within the nation, for about 2,000 million kilos (2,300 million euros on the present change fee).

Regarding the operation in Chile, the consideration and obligations of the acquired enterprise, together with its debt, “will be paid with its cash flows and are not guaranteed by Millicom,” the telecom explains in a notice. This construction permits it to “take advantage of a long-term strategic presence in South America”, whereas sustaining “a healthy balance sheet” and preserving its “financial flexibility”. The acquired enterprise is not going to be consolidated in Millicom’s monetary statements throughout the joint possession.

Millicom may have the choice to accumulate NJJ’s curiosity within the enterprise within the fifth and sixth years after closing, at a ten% low cost to sure buying and selling multiples, payable in Millicom shares. For its half, NJJ may have a subsequent possibility to accumulate Millicom’s curiosity with the identical pricing methodology within the occasion that Millicom doesn’t train.

The quantity of the transaction features a money cost of fifty million US {dollars} (42 million euros) payable on the closing of the operation and a deferred cost of 340 million US {dollars} (286 million euros on the present change fee) that will likely be paid based mostly on the monetary outcomes of Telefónica Chile. Telefónica has indicated that the signing and shutting of the transaction befell concurrently this Tuesday.

In addition to Chile and Colombia, the Spanish telecom firm has already closed the sale of its companies in Argentina (to the Clarín group for 1,190 million euros), Peru (to the Argentine Integra Tec International for 900,000 euros, though this subsidiary was in chapter and had a debt of 1,240 million euros on the finish of 2024), Uruguay and Ecuador (each to Millicom for 389 and 329 million euros, respectively). In addition, Telefónica has confirmed its determination to not checklist on Wall Street to chop working prices.

The sale of Telefónica’s property in Chile has had different events, equivalent to América Móvil – owned by Mexican businessman Carlos Slim – and Entel, which introduced joint expressions of curiosity, though they later dissolved the alliance. Wow, an impartial operator managed by a number of funding funds, additionally participated, in accordance with native press.