Telefónica Completes Strategic Sale of Colombian Operations to Millicom
Telefónica has finalized the sale of its 67.5% stake in Colombia Telecomunicaciones to international telecom group Millicom for $214 million (approximately €182 million), according to an official filing with Spain’s National Securities Market Commission (CNMV). The transaction will simultaneously reduce Telefónica’s net financial debt by €1.55 billion through debt release mechanisms.
Transaction Adjustments and Strategic Context
The final sale price reflects a significant adjustment from initial reports of €368 million, reflecting standard valuation mechanisms for such transactions. This deal marks Telefónica’s fifth major Latin American divestment since 2024, continuing CEO Marc Murtra’s strategy to streamline operations and strengthen the company’s financial position.
Previous exits include:
- Argentina: Sold to Grupo Clarín for €1.19 billion
- Peru: Transferred to Integra Tec International for €900,000 (subsidiary carried €1.24B debt)
- Uruguay & Ecuador: Acquired by Millicom Spain for €389M and €329M respectively
Colombian Market Transformation
Telefónica emphasized its 20-year legacy in Colombia, stating: “Since entering through acquisitions in 2005-2006, we’ve driven broadband expansion, fiber optic deployment, and 5G network development – fundamentally transforming digital access for millions.” The company highlighted its role in achieving 94% population coverage for 4G services before exiting.
Market Consolidation and Regulatory Approvals
Millicom’s Tigo Colombia (currently holding 50% market share) received conditional approval from Colombia’s Superintendence of Industry and Commerce (SIC) in November 2025 to merge with Movistar. The combined entity would become Colombia’s second-largest operator behind Claro (América Móvil), controlling approximately 38% of mobile subscriptions according to 2025 CRC data.
A critical pending condition requires the Colombian government to sell its 32.5% stake in Colombia Telecomunicaciones to Millicom by April 2026. Industry analysts at Datos & Analítica project this consolidation will accelerate 5G deployment timelines by 18-24 months nationwide.
Strategic Implications for Latin America
Telefónica maintains operations in Brazil – deemed strategically vital due to its 34% market share in South America’s largest economy – while progressing toward exits from Chile, Mexico, and Venezuela. The Venezuelan market presents particular challenges due to economic sanctions and currency instability, with negotiations reportedly ongoing through neutral-market intermediaries.
Millicom CEO Mauricio Ramos stated: “This €900 million regional acquisition spree positions us to deliver next-generation infrastructure through scaled operations. In Colombia specifically, we’ll prioritize fiber-to-home expansion and 5G commercialization in 15 major urban centers by 2027.”
Financial analysts at Bloomberg Intelligence note that Telefónica’s Latin American divestments have reduced corporate debt by €4.2B since 2024, improving its debt-to-EBITDA ratio from 3.2x to 2.6x – a critical factor in maintaining its BBB credit rating.
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