MADRID (Reuters) – Spanish telecom company Telefonica said Wednesday it agreed to sell its cell phone antennas in Europe and Latin America to US telecommunications infrastructure operator American Towers for € 7.7 billion (9, $ 41 billion) in cash.
Under the terms of the agreement, Telefonica Telxius’ infrastructure unit will deliver the company’s cell phone antennas to Spain, Germany, Brazil, Peru, Chile and Argentina.
Telefonica also said it plans to use the proceeds from the sale, which include a capital gain of approximately € 3.5 billion, to reduce its net financial debt by € 4.6 billion.
The Spanish firm has said over the past two years that it plans to reduce its exposure to Latin America, where profit margins have shrunk to reduce its debt.
($ 1 = 0.8187 euros)
Reporting by Inti Landauro; editing by Uttaresh.V