Telefónica sells Argentinian unit to Telecom Argentina for $1.25 bn

News Telefónica has announced the sale of its Argentina to Telecom Argentina for $1.25 billion. In a short statement released yesterday, the company said that it has “reached an agreement with Telecom Argentina to sell all of its shares in the share capital of Telefónica Argentina. The deal, the company said , is “part of the Group’s strategy to reduce its exposure to the region and continue operating in a sustainable manner to build value for its shareholders.” Telecom Argentina has said that it “will continue to develop the country’s digital infrastructure and increase fixed and mobile broadband coverage, and accelerate the deployment of fibre optics and 5G. Thus, Argentina will have a digital infrastructure of international level and quality, boosting the development of important sectors of the economy.” However, Argentinian President Javier Milei has issued concern over the transaction, as it would leave 70% of the country’s telecommunications services in the hands of one group. “The state will take all pertinent measures to avoid this,” a statement confirmed. Telefónica has been actively selling off assets in recent years, including its tower businesses and shares in fibre ventures across Europe and Latin America. These moves are aimed at tackling its €26 billion debt burden and free up capital to investment in 5G and digital infrastructure in key markets, such as Spain, Brazil, and Germany. Keep up to date with the latest international telecoms news direct to your inbox with our newsletter! Also in the news: Eutelsat, Mediatek, and Airbus successfully trial 5G NTN over LEO satellites EU commits €8 billion to strengthen submarine cable security Vodafone using drones to plug holes in damaged networks