Telecommunications company Telefónica reached an agreement with General International Telecom for the sale of its Movistar unit in El Salvador. After the failed business with América Móvil in 2019, the operation could finally be carried out in exchange for USD 144 million from the British company.
As explained by the telco, the contract involves all of the 99.3% share capital that it owns in the subsidiary, and the agreed amount is equivalent to seven times the approximate operating income that it registered before the amortization period that went through in 2020.
About the reasons behind the sale, Telefónica explained that the decision was part of an asset management policy “based on a value creation strategy, improving the profitability of capital“. Although both parties have already reached an agreement, the closing of the contract still depends on the authorization of the regulatory bodies in each region, among other conditions.