Wedoany.com Report-May 31, Telefónica has agreed to sell its Uruguay-based mobile subsidiary, Telefónica Móviles del Uruguay S.A., to Millicom International for $440 million. The transaction will see Millicom acquire full ownership of the Uruguayan business, strengthening its presence in Latin America.

The deal is expected to enhance Millicom’s cash flow by 2026 through cost efficiencies and improved integration with its existing operations in the region, including businesses in Paraguay and Bolivia. The acquisition will provide immediate scale and long-term value, supported by Uruguay’s stable economy and strong credit rating, which reduces operational risks. However, the transaction will temporarily increase Millicom’s debt by approximately 0.1x.

Millicom anticipates that the acquisition will create new operational and commercial opportunities, particularly by expanding its digital ecosystem. This aligns with the company’s goal of promoting digital inclusion and sustainable development across Latin America. By integrating Telefónica’s Uruguay operations, Millicom aims to enhance its regional network and service offerings.

Millicom CEO Marcelo Benitez stated: “This acquisition represents a key milestone in our purposeful growth strategy across Latin America - especially in Uruguay, a country with strong fundamentals and a forward-looking digital agenda. We are committed to being a long-term partner in Uruguay’s digital development by investing in mobile infrastructure, improving service quality, and fostering innovation and talent development.”

The transaction is pending standard closing conditions, including regulatory approvals. Once finalized, the deal will bolster Millicom’s ability to deliver advanced mobile services and contribute to Uruguay’s digital infrastructure. The company’s focus on improving connectivity and fostering innovation underscores its commitment to supporting economic and technological progress in the region.