Telefónica advances divestments in Venezuela and Chile

Telefónica is advancing strategic divestments in South America, targeting its operations in Venezuela and Chile.

In Venezuela, the company is working to finalize the sale of its local subsidiary before the end of 2024. Negotiations are underway with potential investors, including Millicom International Cellular S.A. (Tigo) and the Miami-based LARA Fund. The subsidiary is estimated to have a market value between 300 and 350 million euros. The transaction remains subject to regulatory approvals in both Venezuela and the United States.

In Chile, Telefónica and the investment fund KKR have initiated the sale of OnNet, a neutral fiber optic network provider. JPMorgan and Scotiabank are coordinating the process, which is expected to conclude by 2027. The enterprise value of OnNet is estimated to be between 1.5 billion and 2 billion dollars. This move would mark Telefónica’s exit from its remaining assets in Chile following the previous sale of its Chilean subsidiary to a consortium involving Millicom and NJJ Holding.