Telefónica sells its towers in Europe and Latin America for 7.7 billion euros

This Wednesday the Spanish multinational Telefónica announced the sale for 7.7 billion euros (about US $ 9.4 billion) from its telecommunications tower division in Europe and Latin America to the American company American Tower Corporation.

The agreement involves the transfer of 30,722 sites in Spain, Germany, Brazil, Peru, Chile and Argentina which until now were controlled by the subsidiary of the Spanish giant, Telxius Telecom, according to Telefónica in a statement.

After this, the Telefónica shares were trading almost 10% higher at noon up to 3.95 euros on the Madrid stock exchange.

The operation will be paid in cash, will provide a capital gain of 3,500 million euros (about US $ 4,270 million) to the spanish group.

This will will allow Telefónica to reduce its large debt by about US $ 5,600 million, which in September was close to US $ 44.8 billion.

Now the American Tower agrees in the agreement to maintain the employment of the acquired division, while Telefónica must maintain the current contracts signed for the use of this infrastructure.

With information from the AFP news agency.

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