Telefónica agreed to sell its interests in local affiliates in Guatemala and El Salvador to América Móvil for EUR 570 million.
The aggregate amount of the transaction (enterprise value) for both companies is US$648 million (approximately EUR 570 million at the current exchange rate, EUR 293 million of which correspond to Telefónica Guatemala and EUR 277 million to Telefónica El Salvador), an implicit multiple for the total amount of the transaction of 9.7 times the estimated 2018 EBITDA of the two companies. Both of the local affiliates provide mobile, fixed line voice, data and paid TV services.
Telefónica said it is disposing of these assets as part of its portfolio management policy based on a strategy of value creation, improving return on capital and strategic positioning.
