Banc Sabadell | Telefonica (TEF) confirmed last week the sale of its subsidiary in Nicaragua for 390 M€ and so completes the sale of all its activities in Central America for a total of 2.052 M$/reduction of debt by 1.4 M€ (7.4x OIBDA 2018 vs our valuation of 6/7x for all the subsidiaries).
Telefonica controlled 60% of Telefonica Centroamérica (Panama, Nicaragua, El Salvador and Guatemala) and 100% of Costa Rica, which together represented 1.8% of sales, 1.7 % of EBITDA and 0.9% o f EV and presented sales in the first nine months of 2018 with organic growth of +5.9%, EBITDA +15.5% and operational CE +37.5%.
News known and expected. However, the impact is limited because of its scale and Telefonica will reduce its net financial debt by 1% with this operation.
