Mergers & acquisitions

Telefónica Sells Stake in LatAm Group

MADRID -- Telefónica S.A. has reached an agreement today with Corporación Multi Inversiones ("CMI"), to sell the 40% of Telefonica´s stake in Guatemala, El Salvador, Nicaragua and Panama. The transaction amounts to 500 million US dollars plus a variable amount of up to 72 million US dollars, according to the future evolution of the transferred assets. The abovementioned sale will be implemented through the creation of a joint venture in which Telefónica will contribute with all its assets in Guatemala, Panama, El Salvador and Nicaragua. Telefónica Group will maintain the control of these assets, and therefore the transaction will have no impact on the consolidated results, as it is a transaction with minority shareholders. The implied multiple for the total amount of the transaction means 6.5 times EBITDA 2012 of the companies involved in the transaction. Telefónica SA

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