Telefónica offered €10bn for majority stake in Latam business

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Telefónica has reportedly received a €10 billion offered for a 51% stake in its Latin American (Latam) businesses.

According to El Mundo the deal came from Colombia from a group of billionaire entrepreneurs across the region.

The news follows Telefónica’s announcement back in November, when Telefónica confirmed its intention to spin-off of its businesses in Hispanoamérica. At the time, the company cited changing market conditions as one of the main reasons for the change in it operational model and that the business would now be managed as an autonomous unit with its own dedicated team.

The reports claim that the consortium of investors intend to create a holding company that would have the group of investors act as the main shareholders while Telefónica and its smaller shareholders retain a minority stake. The holding company would have one or two different members of the consortium in each of the countries included in Telefónica HispAm unit; Argentina, Chile, Venezuela, Ecuador, Mexico, Peru, Uruguay and Colombia.

A Telefónica spokesperson is said to have denied that such an offer has been received, though El Mundo still asserts that the offer has only just been received and no officially negotiations have begun.

Next month Telefónica is set to reveal its financial results for 2019, which includes its HispAm unit. It is expected that further news surrounding the company’s plans following the release of its new 5-point plan, will be announced at this time.