Latham & Watkins Advises Telefónica on US$400 Million Sale of Colombia Telecom Coltel to Millicom

Telefónica has reached an announced agreement with Millicom for Millicom to acquire Telefónica’s controlling 67.5% equity stake in Colombia telecom service provider Coltel. The transaction, valued at US$400 million, is part of Telefónica’s strategy to reduce exposure to the region and continue to operate sustainably to build value for its shareholders. The purchase price is subject to customary adjustments for net debt evolution, working capital and changes in foreign exchange rates.

Latham has advised Telefónica on numerous telecommunications mergers and acquisitions and financing transactions in Latin America, including Telefónica’s recent US$1.245 billion sale of its Argentina operations, as well as transactions in Chile, Colombia, El Salvador, Guatemala, Nicaragua, and Panama. Latham’s Latin America team has been at the vanguard of high-profile M&A deals in the region, including Davivienda’s combination with Scotiabank announced in January.

Latham & Watkins LLP represented Telefónica in the transaction with a deal team led by Latin America Practice partners Tony Del Pino, Carlos Ardila, and Ignacio Pallarés, with associate Francisco Lanusse, international visiting associate Lisa Carral Flores, and assistance from Catalina Ucros Tellez. Advice was provided on tax matters by partner Jordi Domínguez and counsel Blanca Vázquez de Castro; and on intellectual property matters by partner Jeffrey Tochner, with associate Sebastian Moss.