At the end of July, Telefónica signed a "non-binding agreement" with Millicom to explore "a possible corporate transaction with respect to the assets that both groups have in Colombia."
Telefónica is moving forward with the process to sell its Colombian subsidiary and has submitted to the Superintendency of Industry and Commerce, the competition authority in the South American country, a request for a prior evaluation for the potential sale of Coltel (its subsidiary in Colombia) to the Luxembourg telecom company Millicom, an operation valued at around US$ 400 million.
At the end of July, Telefónica signed a "non-binding agreement" with Millicom to explore "a possible corporate operation with respect to the assets that both groups have in Colombia," a potential transaction that would involve the sale of Telefónica's stake in Coltel.
"Pursuant to the non-binding agreement entered into between Millicom Spain and Telefónica Hispanoamérica on July 16, 2024, Colombia Telecomunicaciones and Colombia Móvil filed with the Superintendency of Industry and Commerce on December 19, 2024 the request for pre-evaluation of the projected transaction, consisting of the possible acquisition by Millicom Spain of the shareholding of Telefónica Hispanoamérica SL in Colombia Telecomunicaciones (Telefónica Colombia)," details the relevant fact sent to the Colombian Competition Authority.
In fact, the request is currently being studied by the Superintendency of Industry and Commerce of Colombia, the document adds.
"This potential transaction is subject to the signing of definitive agreements between the companies involved and to obtaining the corresponding regulatory approvals, and may involve the sale of the Telefónica group's shares in Telefónica Colombia," the teleco indicated in the statement sent to the National Securities Market Commission (CNMV) at the end of July 2024.
In this regard, Millicom pointed out that the non-binding agreement signed between the parties seeks the merger of Telefónica Colombia (Coltel) and TigoUne, so the talks include the "possible acquisition by Millicom" of Telefónica's stake in Coltel.
Millicom believes that the merger of Coltel and TigoUne would "rejuvenate" Colombia's telecommunications sector by forming a "solid" entity with the scale and financial capacity necessary to support the "significant investments in networks and spectrum" required to achieve Colombia's digital inclusion goals.
"Colombia will gain a second large-scale and financially viable operator at a crucial time. This strengthened operator would boost Colombia's digitalization, ensure broader access to modern digital services across the country, and advance the deployment of fiber and 5G technologies across the country, enabling faster and more reliable services and a better customer experience," Millicom said last summer.
