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Spain's Telefonica plans to sell minority stake in tech unit, Cinco Dias says

Published 07/07/2021, 03:17 AM
Updated 07/07/2021, 03:20 AM
© Reuters. FILE PHOTO: Security guards walk past a screen displaying the logo of Spanish company Telefonica at its headquarters in Madrid, Spain, May 12, 2021. REUTERS/Sergio Perez/File Photo

MADRID (Reuters) - Spanish telecoms operator Telefonica (NYSE:TEF) plans to raise as much as 500 million euros ($591.35 million) with the sale of a minority stake in its technology unit, Cinco Dias newspaper reported on Wednesday, citing financial sources.

Telefonica has hired advisor KPMG and investment bank Morgan Stanley (NYSE:MS) and potential buyers include private equity funds such as Apax Partners, the newspaper said.

Telefonica is ready to sell up to 49% of the unit, which is initially valued at 1 billion euros. The unit includes cybersecurity, Internet of Things an cloud computing operations, Cinco Dias said.

The sale would be part of a wider Telefonica plan to reduce its debt by selling assets.

© Reuters. FILE PHOTO: Security guards walk past a screen displaying the logo of Spanish company Telefonica at its headquarters in Madrid, Spain, May 12, 2021. REUTERS/Sergio Perez/File Photo

A spokesperson for Telefonica declined to comment.

($1 = 0.8455 euros)

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