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Telefónica to move central American assets into JV

Spanish telco Telefónica is to sell 40% of its assets in El Salvador, Guatemala, Nicaragua, and Panama to Corporación Multi Inversiones in a US$500 million (€380 million) deal.

Telefónica will retain control of operations across the four countries, and its networks will be merged into a new joint venture.

The US$500 million deal, which is subject to regulatory approval, also includes the payment of an additional amount up to US$72 million based on operational performance over the next few years.

Telefónica said the deal, the value of which amounts to about 6.5 times EBITDA for 2012, is part of  its policy of managing its portfolio of assets to increase the company’s financial flexibility.