Sale of Data Centers

RNS Number : 3383Y
Telefonica SA
08 May 2019
 

 

TELEFÓNICA, S.A. ("Telefónica") in compliance with the Securities Market legislation, hereby communicates the following

 

 

 

INSIDE INFORMATION

 

Today, Telefónica has reached an agreement for the sale of a portfolio of 11 Data Centers located in 7 jurisdictions (Spain, Brazil, USA, Mexico, Peru, Chile and Argentina) with a company controlled by Asterion Industrial Partners SGEIC for a total amount of 550 million euros.

 

The transaction is expected to generate capital gains before taxes and non-controlling interests of around 260 million euros.

 

The sale agreement includes the signing of a contract for the provision of housing services to the Telefónica Group, which guarantees that Telefónica will continue to provide services to its clients in those Data Centers with the same quality and the same conditions.

 

The closing of the transaction will take place in a period of approximately two months, except for four Data Centers where the effective transfer is subject to several authorizations and administrative procedures.

 

This transaction is part of the Telefónica Group 's asset portfolio management policy based on a strategy of value creation, improving return on capital and strategic positioning. It also complements the objective of organic debt reduction and strengthening the balance sheet in a growing cash flow scenario, which allows us to maintain a sustainable and attractive shareholder remuneration.

 

 

Madrid, May 8, 2019

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
DISSSMSMAFUSESI
UK 100

Latest directors dealings