Finance
Telefonica's sale of Peruvian fibre network falls through
Published by Global Banking & Finance Review®
Posted on November 30, 2024
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 30, 2024
2 min readLast updated: January 28, 2026
Telefonica's planned sale of its Peruvian fibre network to KKR and Entel has fallen through due to unspecified conditions, impacting its debt reduction strategy.
MADRID (Reuters) - Telefonica's sale of stakes in its fibre optic network in Peru to private equity fund KKR and Chilean telecom firm Entel announced in July 2023 fell through, Entel said in a filing to the regulator on Thursday.
Telefonica said it is maintaining talks with Entel and KKR, in a separate filing to the Peruvian stock market regulator.
The deal was announced in July 2023 when Telefonica said it had agreed to sell a 54% stake in its fibre network to KKR and a 10% stake to Entel.
The Chilean company said the deal fell through "due to the breach of certain closing conditions" it did not specify.
Over the past few years, Telefonica has carried out a series of asset sales to reduce debt and to help fund the hefty investment required to build 5G mobile networks.
Telefonica did not disclose the value of the transaction but said the deal would cut its debt by 200 million euros ($217.8 million).
The transaction valued 100% of the network at about 550 million euros, including debt, according to a banking source close to the deal.
(Reporting by Javi West Larrañaga, editing by Inti Landauro and Louise Heavens)
The main topic is Telefonica's failed sale of its Peruvian fibre network to KKR and Entel.
The deal fell through due to unspecified closing conditions not being met.
The failed sale impacts Telefonica's plans to reduce its debt by 200 million euros.
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