Telefonica sells mobile mass for $9,4bn

The Spanish telecom operator Telefonica has confirmed it had reached a deal to sell its mobile phone masts both in Europe and in South America. The deal is estimated at some 9,41 billion dollars and the buyer is the US telecom infrastructure operator American Towers, Reuters reported.

The whole amount of the agreed price will be paid fully in cash only. Under the terms of the deal, Telefonica’s infrastructure unit Telxius will hand over the company’s mobile phone masts in Spain, Germany, Brazil, Peru, Chile and Argentina. Telefonica also said it plans to use the proceeds of the sale, which include a capital gain of about 3.5 billion euros, to reduce its net financial debt by 4.6 billion euros.

The Spanish company has said for the past two years that it planned to reduce its exposure to Latin America where profit margins have dwindled to reduce its debt.

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