Telefonica Sells Stake in Central America Assets to Cut Debt
April 30, 2013 by Avila Capital Markets, Inc.
Telefonica SA (TEF), Spain’s largest phone company, agreed to sell a 40 percent stake in its Central American assets to closely held Corporacion Multi Inversiones to raise $500 million to pare debt.
As part of the agreement, Telefonica will create a new company to hold the businesses in Guatemala, El Salvador, Nicaragua and Panama, the Madrid-based company said in a statement today. The transaction implies a valuation of 6.5 times earnings before interest, taxes, depreciation and amortization, based on 2012 figures, it said.
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