By Olivia Bugault
Telefonica SA said Wednesday that its subsidiary Telxius Telecom SA has signed an agreement with American Tower Corp. for the sale of its European and Latin American telecommunication-tower divisions for 7.7 billion euros ($9.40 billion) in cash.
Under the agreement, Telxius Telecom will sell roughly 30,722 tower sites through two independent transactions, The Spanish telecommunications company said. One transaction will focus on its tower division located in Spain and Germany, and the other will be for its business in Brazil, Peru, Chile and Argentina, the company said.
Telefonica expects a capital gain of roughly EUR3.5 billion and should reduce its net financial debt by about EUR4.6 billion after the sale to the U.S. real-estate investment trust company is completed, it said.
"The Telefonica Group operators will maintain the current leases agreements of the towers signed with the companies sold subsidiaries of Telxius Telecom SA so that these operators will continue to provide their services in similar terms to the current ones," the company said.
Write to Olivia Bugault at email@example.com
(END) Dow Jones Newswires