Telefónica sold its entire stake in Telefónica del Perú (TdP) to the Argentine firm Integra Tec International for €900,000 (around 3.7 million Peruvian soles), according to information submitted to Spain’s National Securities Market Commission (CNMV in Spanish) on Sunday.
In addition to that cash amount, Integra Tec International will assume more than €1.2 billion in debt. Telefónica stated that “the price was determined taking into account the situation of Telefónica del Perú and the context of the agreement reached.”
According to the filing with the CNMV, Integra Tec International acquired 99.3% of TdP’s shares. The remaining 0.7% is held by minority shareholders. The Argentine firm will launch a public tender offer (OPA).
The transaction includes the financial loans granted to TdP by Telefónica Hispam, the entity that oversees operations in Latin America excluding Brazil. In this regard, the parties agreed to make the entire undrawn amount of the €370 million credit line (1.549 billion soles) granted by Telefónica Hispam available to the new owners of TdP. This credit line is intended to support the company’s commercial operations, including payments to employees and suppliers.
This credit arrangement will change following the sale, as Integra Tec International will also contribute funds. The exact figures of this combined funding have not yet been disclosed.
As with the sale of its Argentine subsidiary, Telefónica ensured the transaction was completed and the payment for the sale received prior to obtaining regulatory approval. In this way, any challenges to the deal would fall on the buyer.
Transition. Integra Tec announced in a statement that it will take over the portfolio of 13 million users and stated that its main objectives will be maintaining and expanding telecommunications services, restructuring TdP’s debt and implementing a business plan.
It added that it “will seek to establish a constructive dialogue with all parties involved, including the government and creditors, to ensure that the transition is as smooth as possible.”
As part of the transition, Germán Ranftl was appointed as the new chairman of the board of TdP. Ranftl is the Chief Financial Officer of Edenor, Argentina’s main electricity distribution company, and his experience in that field will be key to leading the operator’s financial restructuring process in the context of the bankruptcy proceedings.
The new owners announced that, to ensure operational stability during this transition, TdP’s current management team, led by Elena Maestre, will remain in place. “This approach aims to preserve service continuity and strengthen the trust of users, suppliers and other stakeholders,” they stated.
Integra Tec is a company whose most prominent figure is former politician and current Argentine businessman José Luis Manzano, who was previously among the interested parties in acquiring Telefónica’s Argentine subsidiary, which ultimately went to Telecom (Grupo Clarín).
TdP said that once the bankruptcy filing is approved by Indecopi, Integra Tec International will present a debt restructuring plan to creditors and continue negotiations.
Context. The backdrop of the transaction was a perfect storm for the Peruvian subsidiary, which was undergoing a deep financial crisis marked by a very high debt and tax claims amounting to about €650 million. The operator took this issue to the International Centre for Settlement of Investment Disputes (ICSID).
TdP reported a net loss of €872 million in 2024, more than five times higher than the loss in 2023. Its revenue last year was €1.548.5 billion, a 7% decrease from the previous year. By the end of 2024, TdP’s debt stood at €1.241 billion.
This sale is the third one Telefónica has made in South America. First, it completed the divestment of its Argentine subsidiary for €1.2 billion, followed by the sale of its Colombian branch to Millicom for €367 million.