Telefónica takes another step in its divestment strategy in Latin American countries. The Spanish telecom company has sold 100% of the share capital of Telefónica Chile to the investment firm NJJ and the telecommunications operator Millicom, for an amount of 1,215 million US dollars (1,030 million euros) and an additional payment of 150 million dollars (126 million euros at the current exchange rate), conditional on certain events in the Chilean telecommunications market. In total, the value of the operation may reach 1,156 million euros. Added to this is the net financial debt of Telefonica Chile, which as of December 31, 2025 was 479 million euros. Telefónica’s stock barely changed after making the sale public, with an increase of 0.2%.
NJJ is the personal investment vehicle of the French businessman Xavier Niel, and will have 51% of the capital of the joint firm, while Milicom, whose first shareholder with 40% is also Xavier Niel through Atlas Investissement, will have 49%. Millicom is the owner of the Iliad telecom group. Recently, Telefónica closed the sale of its company for around 182 million euros.
At the closing of the operation, Telefónica must contribute 92 million dollars “which will be used to satisfy certain payments and ensure the stability of the balance,” Milicom says in a statement.
The sale of the Chile business is framed “within the asset portfolio management policy of the Telefónica Group, and is aligned with its exit strategy from Latin America,” the Spanish operator has stated in a relevant fact sent to the markets regulator, the National Securities Market Commission (CNMV). The objective of the company’s president, Marc Murtra, is to focus on its four main markets, Spain, Brazil, Germany and the United Kingdom.
The consideration and obligations of the acquired business, including its debt, “will be paid with its cash flows and are not guaranteed by Millicom,” explains the teleco in a note. This structure allows it to “take advantage of a long-term strategic presence in South America”, while maintaining “a healthy balance sheet” and preserving its “financial flexibility”.
Millicom will have the option to acquire NJJ’s interest in the business in the fifth and sixth years after closing, at a 10% discount to certain trading multiples, payable in Milicom shares. For its part, NJJ will have a subsequent option to acquire Millicom’s interest with the same pricing methodology in the event that Millicom does not exercise.
The amount of the transaction includes a cash payment of 50 million US dollars (42 million euros) payable at the closing of the operation and a deferred payment of 340 million US dollars (approximately 286 million euros at the current exchange rate) that will be paid based on the Telefónica has indicated that the signing and closing of the transaction was carried out simultaneously this Tuesday.
In addition to Chile and Colombia, the Spanish telecom has already closed the sale of its businesses in Argentina (to the Clarín group for 1,190 million euros), Peru (to the Argentine Integra Tec Interational for 900,000 euros, although this subsidiary was in bankruptcy and had a debt of 1,240 million euros at the end of 2024), Uruguay (to Millicom Spain for 389 million euros) and Ecuador (to Millicom Spain for 329 million euros). In addition, Telefónica has confirmed its decision not to list on Wall Street to cut operating costs.
For its part, NJJ is a majority shareholder in the commercial real estate company Unibail-Rodamco-Westfield, has investments in emerging technology companies and has co-founded Mediawan, the first European independent production studio.
