After more than three decades in the country, Telefónica confirmed on Tuesday the sale of its Chilean subsidiary to NJJ Holding and Millicom Spain. The decision is part of the company’s global plan to gradually exit the Hispanic American market.
The transaction marks the end of a 35-year cycle in Chile and opens a new chapter under the control of international capital that previously had no direct presence in the local market. This move reflects a broader trend of telecom companies reassessing their portfolios and focusing on core markets.
Company Statement on Exit
The company emphasized that the transfer aims to ensure continuity and future prospects for the Chilean subsidiary. Telefónica Hispam CEO Alfonso Gómez stated: “Telefónica is leaving in Chile a robust operation, a modern infrastructure and a platform prepared for the new shareholder to continue driving the country’s digital development on solid foundations.”
With these statements, the company underscored that existing infrastructure and services will be able to continue operating without interruption under the new administration.
Impact on Movistar Plans and Contracts
A primary concern among users has centered on the future of services marketed under the Movistar brand. According to information available in the market, the brand will continue to function normally, as the operation is an acquisition and not a merger with another company already operating in Chile.
As such, no significant changes are anticipated in the short or medium term. Existing contracts, as well as mobile plans and home services – such as fiber optics and television – will maintain their current terms and values.
Financial Details of the Transaction
The transaction includes an initial payment of $50 million USD. Up to an additional $150 million USD could be added, subject to the achievement of value-creation goals.
Telefónica will also make an additional contribution intended to safeguard the financial stability of the subsidiary at the time of the final closing of the agreement.
With this move, the Chilean telecommunications market gains a new controlling stakeholder, while operational continuity is maintained for millions of customers for the time being. The sale, as reported by Reuters, is part of a wider trend of Telefonica streamlining its operations.
