Telefónica Argentina is on sale: millionaire debt and the dilemma of possible buyers

Telefónica reactivated the sale of its operations in ArgentinaPeru and Colombia due to the need to reduce liabilities and improve its stock market contribution that continues down. However, the sale of the Argentine subsidiary has certain pitfalls, which include The country’s economic instability, the company’s debts and the need for significant investments in 5G technology.

But to the vernacular seasoning, it is added that Telefónica España has recently changed leadership: Marc Murtra replaced José María Álvarez-Pallete after the appointment of Pedro Sánchez as Spanish president. Murtra, of the Catalan Socialist Party, has not yet announced its plans, which is still being written.

Already starting from these dimes and diretes, despite the alleged interest of several investor groups, which have not been officially confirmed, Argentine economic conditions and possible geopolitical complications put a mantle of doubts about the concretion of an agreement.

In addition, it is striking and even contradictory that The company explores to sell in some countries while investing in others, such as Venezuela.

The possible reasons behind this strategy include political influences and the search for profitability. Is that the sale of assets that could help Telefónica fulfill their Many financial obligations and the attempt to increase the distribution of profits to their shareholders which implies that it cannot sell at any price.

This complex panorama of a company that is indebted and in the disinversion plan, added to the fact that it has become obsolete at the technology level, would explain the sea of ​​transcended that slide from one side to the other through the media. The key: upload the price expanding the market of possible buyers.

1 billion euros for a downward company?

Telefónica Argentina has been for sale for years, generating interest but without specifying a buyer willing to invest the intended sum.

Considering the fluctuations of the exchange rate and the pendular policy of the country, the context of the market becomes crucial for any skilled investor.

The sale could be more attractive if it was offered in block, instead of country by country. But Telefónica is selling its operations in Peru and Colombia, but not in Brazil.

If the sale price of Telefónica Argentina was drastically reduced, due to hidden liabilities, still Additional investment would be needed to improve 5G -related technology.

Apparently, Telefónica would be accelerating the sale of its subsidiary in Argentina due to Slim’s interest and four other groups. JP Morgan Chase would be in charge of the search for interested parties.

In the market it circulates that América Móvil, Illiad, Liberty Global and Grupo Werthein compete for the company, offering 1,000 million euros.

However, the possibility of Telefónica gave a business to Slim / Claro, whom he has rejected in Europe, seems unlikely. It has also transcended the interest of Grupo Clarín. But the monopoly that both companies would in fact constitute an eventual purchase, makes it not handle what they show.

Liberty Global had a negative experience in Argentina as owner of Cablevision, Tournaments and Competencies. The Werthein group, today led by Darío but whose family has plenty of experience in the sector when Adrián led the group’s businesses, could consider investing in Brazil instead of Argentina. Today they have operations through Sky in Brazilian territory and have opened two more companies in 2024: Overlabs and SKX. In addition to the impulse of the insurance market in the Carioca country.

China could be a sure buyer due to Beijing’s strategy to expand in Latin America. However, it seems unlikely that The Government of Javier Milei allows the entry of a Chinese telecommunications company in full search for a free trade agreement with the United States.

Thus, with a tentative date of concretion of the sale on February 27, there are those who see in the play of Telefónica something similar to what the representatives of the players do: invent clubs interested in the pass to raise the price of the player . In the world of telecommunications it is rumored that the company based on Spain seeks to generate A list of interested weight alleged to inflate its price and then get rid of them alleging that they have not presented the necessary documentation and guarantees.