Telefónica completes the sale of part of its fiber in Colombia for 176 million

Madrid, Jan 12 (EFE) .- Telefónica Colombia has closed the agreement reached with InfraCo, a Colombian company controlled by KKR, to sell fiber optic assets for about 200 million dollars (176 million euros at today’s exchange rate) and create a joint venture to deploy and offer fiber optics in some 90 Colombian cities.

Last July, Telefónica announced that it had agreed with InfraCo the sale of certain fiber optic assets owned by Telefónica Colombia – 32.5% owned by the Colombian State – for the provision of wholesale connectivity services by the second, the development of fiber optic network deployment activities and other associated services.

This Wednesday, Telefónica communicated to the National Securities Market Commission (CNMV), the Spanish stock market regulator, that, once the corresponding authorizations have been obtained from the regulatory authorities and after compliance with certain agreed conditions, it has proceeded to the closing of the operation.

Telefónica Colombia has received 200 million dollars and 40% of the shares of a Spanish company controlled by KKR (HoldCo), the sole shareholder of InfraCo.

The implicit valuation of HoldCo derived from the transaction is estimated at 500 million dollars, which represents about 400 million euros at the exchange rate offered by the operator itself in the statement (1 euros to 1.25 dollars), although at today’s exchange rate. (1,136 dollars) the amount is around 440 million.

«This operation is part of the active portfolio management policy of the Telefónica Group, based on a strategy of creating value and optimizing return on capital,» explains the Spanish telecommunications group.

In their day, both companies explained that it is an agreement with which the companies will bring fiber optic internet to about 90 cities in Colombia during the next three years «with a network that will cover 4.3 million Past Real Estate Units (UIPs ).

The Colombian government has proposed to reach 70% of connected homes and improve the speed of connectivity in the country.

«The agreement with KKR will allow to accelerate the deployment of fiber optics in Colombia at an unprecedented rate, in a market that has shown enormous potential in the last year,» explained the executive director of Telefónica Hispanoamérica, Alfonso Gómez Palacio, at the time. it’s a statement.

The results of this partnership, in which KKR will acquire a 60% majority stake and Telefónica Colombia the remaining 40%, will also contribute to advancing the goal of eliminating inequalities in digital transformation in the most remote areas of the country.

«Added to this are the opportunities that fiber will generate for thousands of homes and companies that see digitization as an opportunity for development. It is another step for our company to lead FTTH (fiber optic to the home) connections in Latin America», Gomez added.

Telefónica Colombia has more than 380,000 customers of its fiber service with symmetric speeds of up to 500 MB and, as explained by the company, this «deployment has allowed the average residential navigation speed in the cities where this technology is present to be much higher. with respect to that of other localities «.

Telefónica will provide this new company with its current fiber optic infrastructure to the home with which it reaches 50 cities and municipalities.

(c) EFE Agency