Telefónica's subsidiary Telxius Telecom has signed an agreement with American Tower Corporation (ATC) for the sale of its telecommunications towers division in Europe (Spain and Germany) and in Latin America (Brazil, Peru, Chile and Argentina) for 7.7 billion euros.
The agreement establishes the sale of a number of approximately 30,722 telecommunication tower sites and comprises two separate and independent transactions (on one hand, the Europe business and, on the other hand, the Latin American business), setting the respective closings once the corresponding regulatory authorizations have been obtained.
This operation is part of the Telefónica Group's strategy, which includes, among other objectives, an active portfolio management policy of its businesses and assets, based on value creation and at the same time, accelerating the organic reduction of debt.
Focused on our ambitious goals.
Telefónica is a company forged in change, focused on the execution and fulfillment of its commitments, and continues to execute its action plan as an accelerator of the company's transformation, even more importantly in the current context. The agreement with American Tower fulfills the main objectives of the roadmap set out approximately a year ago: to boost opportunities with the greatest growth potential, leveraging the value of our infrastructures; to increase agility and improve efficiency; and to create value with a long-term sustainable model by achieving operational excellence.
The creation of Telefónica Infra was one of the main commitments acquired with the design of the New Telefónica, to bring to light the value of our assets and develop alternative models for the deployment of infrastructures that accelerate growth. This strategic business unit, which encompasses shareholdings in telecommunication infrastructure vehicles, providing service to both Telefónica's operators and third parties, has confirmed the ambitious objectives that were set a year ago and corroborates the relevant role that it continues to be called upon to play.
The President of Telefónica, José María Álvarez-Pallete
This is a deal that makes strategic sense within our roadmap. American Towers was our second supplier after Telxius. After this great operation we will continue to focus on our most ambitious objectives: the integration of O2 with Virgin in the United Kingdom, the purchase of Oi mobile in Brazil and the reduction of debt.
