Telefonica del Peru, which was 99.3% owned by the Spanish parent company, attributed tax disputes and administrative rulings as reasons for its difficulties, stating they placed it “in competitive disadvantage”, despite being the largest telecom provider in the country.
The move follows the telecoms giant filing for bankruptcy protection for its Peruvian unit in February, following a non-cash write-down of €314 million recorded by the parent company.
However, as part of the deal, Integra Tec will take over the €1.24 billion the Peruvian unit owes to the tax authority and bondholders and will also buy the remaining 0.7% of shares held by minority investors.
The news follows Telefónica selling its Argentina business to Telecom Argentina for $1.2 billion as part of its ongoing strategy to gradually reduce its presence in Latin America.
This deal is the first corporate transaction by the company since Marc Murtra assumed the role of CEO in January, succeeding Jose Maria Alvarez-Pallete.
In a statement, the company said: "Argentina will have digital infrastructure of international level and quality, boosting the development of important sectors of the economy.”
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