By Najat Kantouar

Telefonica sold its Peruvian business for 3.7 million Peruvian soles ($991,730) to Integra Tec International as it seeks to gradually reduce its exposure to Latin America.

The Spanish company said Sunday that the price represents around 99.3% of its share capital of Telefonica del Peru.

As part of the deal, Telefonica also sold to Integra Tec the credit facility of up to 1.55 billion Peruvian soles it granted to its subsidiary in February.

Under the agreement, both parties have committed to maintain available the full amount of the undrawn credit in favor of the Peruvian unit, with disbursement to be made partly by Telefonica Hispanoamerica----the group's unit that includes assets and operations in Argentina, Chile, Colombia, Ecuador, Peru, Mexico, Uruguay and Venezuela--and partly by Integra Tec.

Last February, Telefonica decided to start insolvency proceedings for its Peruvian subsidiary, in order to achieve its restructuring. The company granted a credit facility to its Peruvian unit to meet operational cash requirements. The decision reflected the negative financial situation of the Peruvian unit, which placed it at a competitive disadvantage, it said at that time.

Additionally, Integra Tec committed to launching a public tender offer for shares to all minority shareholders of the Peruvian unit, which hold approximately 0.7% of its share capital.

The signing and closing of the transaction took place simultaneously.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

April 14, 2025 01:41 ET (05:41 GMT)

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