Telefónica, Madrid. Credit: JJFarq, Shutterstock.
Telefónica has agreed to sell its Ecuadorian subsidiary to Millicom Spain for €330 million, continuing its strategic retreat from Latin America under chairman Marc Murtra.
The sale of Otecel, which operates as Movistar Ecuador and holds 28 per cent of the local mobile market with five million customers, was announced late Friday and is subject to regulatory approval.
In a statement, Telefónica said the deal is part of its plan “to optimise its portfolio and progressively reduce its exposure in Latin America, focusing on key markets and generating sustainable value” (Cited by El Cronista).
Telefónica’s €2.3 billion Latin American exit plan
Since Murtra became president, Telefónica has divested €2.33 billion in Latin American assets, including:
- Argentina: €1.19 billion (Grupo Clarín)
- Peru: €900,000 plus €1.2 billion assumed debt
- Uruguay: €389 million (Millicom)
- Colombia: €368 million (Millicom)
- Ecuador: €330 million (Millicom)
Millicom CEO Marcelo Benítez said the deal reflects “long-term confidence in Latin America,” calling Ecuador “a dynamic and growing digital market within a stable, dollarised economy.”
Spanish banks remain cautious. Renta 4 maintained a “hold” recommendation, noting the deal could pave the way for more exits, such as Chile or Mexico. Bankinter’s Elena Fernández-Trapiella said Latin America was “a burden” with lower profit margins.
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