The pair signed an agreement where Millicom would acquire Telefónica's 67.5% stake in Coltel for $400 million, subject to adjustments for net debt evolution, working capital and changes in foreign exchange rates.
Millicom has also agreed to purchase the remaining 32.5% of Coltel equity owned by La Nación and other investors at the same purchase price per share offered to Telefonica.
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Millicom CEO Marcelo Benitez said the proposed deal strengthens its presence in Colombia”.
For Telefónica, however, it’s the latest move away from the Latin American market.
Earlier this year, the Spanish telecom giant brought in JPMorgan to look into a potential sale of its Argentina operations, with Millicom among those reportedly interested.
The banking giant was also enlisted to examine a potential sale of its Mexican business, while Telefónica's Peru arm filed for voluntary bankruptcy last month after falling foul to tax issues.
The telco is instead focusing on its core markets like Germany, Spain and the UK.
Telefónica's exit comes as Millicom is looking to expand. Beyond Coltel, it’s also looking to snap up its partner’s 50% stake in UNE.
Last August, Millicom teamed up with Liberty Latin America to combine operations in Costa Rica.
“Millicom reaffirms its ongoing commitment to expanding connectivity and coverage, accelerating digital transformation, and actively contributing to Colombia's continued growth and competitiveness,” Benitez added.
