Telefónica sells its Ecuadorian subsidiary to Millicom for 330 million and moves forward with its exit from Latin America.

Telefónica has agreed to sell its Ecuadorian subsidiary (Otecel) to Millicom Spain for $380 million (around €330 million at the current exchange rate), the company announced Friday night through the National Securities Market Commission (CNMV).

"Today, Telefónica Hispanoamérica, a wholly-owned subsidiary of Telefónica, has reached an agreement to sell to Millicom Spain all of its shares in Otecel (Telefónica Ecuador), representing 100% of its share capital. The transaction value for this company is US$380 million (approximately €330 million at the current exchange rate), and the corresponding price is subject to the usual adjustments in this type of transaction," the operator stated.

In this way, the company continues to advance its strategy of reducing its exposure in Latin America, which has already materialized in the sale of its subsidiaries in Argentina (to the Clarín group for approximately 1.19 billion euros), Peru (to the Argentine Integra Tec International for 900,000 euros), Uruguay (to Millicom Spain for 389 million euros) and Colombia (to Millicom for 368 million euros).

In this context, it is worth noting that the sale of Telefónica's subsidiaries in Argentina and Uruguay has already been closed and signed, while the transactions in Uruguay, Colombia, and now Ecuador are pending certain regulatory approvals.

"The closing of the transaction is also subject to certain closing conditions, including obtaining the relevant regulatory approvals. This transaction is part of the Telefónica Group's asset portfolio management policy and is aligned with its strategy to reduce exposure to Latin America," emphasizes Telefónica's statement sent to the CNMV late Friday.

Telefónica's subsidiary in Ecuador has around 5 million customers and its market share in the country stood at around 28% at the end of the first quarter of the fiscal year, behind Claro (54%) and above CNT (18%).

Millicom, for its part, stated in a statement that this transaction strengthens its presence in South America by expanding into a country with a stable, dollarized economy and "favorable macroeconomic fundamentals."

"The agreement significantly strengthens Millicom's regional presence and commercial reach, laying the foundation for innovation, digital inclusion, and sustained long-term growth. Ecuador's telecommunications sector, supported by the steady expansion of mobile and broadband services and a committed regulatory environment, offers an attractive platform for Millicom to drive digital transformation," the company added.

Along these lines, Millicom CEO Marcelo Benítez emphasized that the acquisition of Telefónica's Ecuadorian subsidiary reflects his company's long-term confidence in Latin America.

"Ecuador offers a dynamic and growing digital market within a stable, dollarized economy, making it an ideal fit for Millicom's strategy. By expanding our presence in South America, we strengthen our platform for innovation, diversification, and long-term value creation," the executive added.