Telefonica rises after selling its Argentinian unit at higher-than-expected valuation

America Movil SAB de CV

25/02/2025 08:43

** Shares of Spanish telecoms company Telefonica  TEF.MC 
rise around 1.8% after it said on Monday it sold its unit in
Argentina for $1.245 billion to Telecom Argentina  TECO2m.BA 
    ** Banco Sabadell says it's a positive news as the rumoured
valuation is more than twice broker's own valuation of 490
million euros ($512.93 million)
    * "In any case, we will have to wait to see what concrete
actions the Argentine government's potential opposition will
lead to, to see if the operation finally goes ahead," it adds
    ** Renta 4 Banco also says the sale price is higher than
market expectations of around 1 billion euros and broker's
valuation of 825 million euros
    ** It adds it is awaiting further divestments in HispAm,
such as Colombia, Peru, Mexico and Uruguay
    ** J.P. Morgan notes the acquisition could lead to large
synergies and potential market repair, as Argentina would become
a 2-player telco market shared by Telecom and America Movil
 AMXB.MX  
    ** It notes, however, that it remains uncertain whether
additional regulatory approvals are needed, and there seems to
be relevant opposition to the deal from the government, which
could result in sizeable remedies or even a rejection
    
($1 = 0.9553 euros)

 (Reporting by Marta Serafinko in Gdansk)
 ((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))