Telefónica finalizes sale of 45% of Bluevía, key to debt reduction | comp

Telefónica has closed the sale of 45% of Bluevía Capital, its fiber-optic vehicle to rural Spain, for more than €1,020 million in cash. The company was valued at 2,500 million euros, with an implied multiplier of 27.1 times that of the start-up Oibda, estimated for 2022.

The deal is key in reducing the telco’s debt. Telefónica placed its net financial debt at the end of September at €28,918 million, with a leverage ratio of 2.79 times OIBDA. According to what the operator said in the account presentation for the third quarter, if the Bluevía deal is included, the debt will drop to 26,700 million, at a leverage rate of 2.52 times.

In a related fact sent to the CNMV, the operator indicated that Bluevía, in which it includes Telefónica España, Telefónica Infra and the consortium formed by Crédit Agricole Assurances and Vauban Infrastructure Partners (through its core fund Infrastructure Fund IV), has started It is already officially active.

“Starting with an initial footprint of 3.9 million real estate units, acquired from Telefónica Spain, Bluevía will expand its network to reach five million by the end of 2024, bringing ultra-fast fiber broadband access, a technology with a lower environmental impact, to regions where It does not currently have this service,” the communication highlights.

“We aspire to expand development beyond major cities. To this end, we will support Telefónica’s fiber optic operations, enhancing and accelerating new deployments. Bluevía is an open company, with a fiber optic network accessible to all; sustainable, respectful of the environment; and inclusive so that no one is left behind.” left behind in the digital world,” says Luis Rivera, CEO of Bluevía.

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With this transaction, Telefónica Infra already owns FTTH vehicles in Spain, Germany, the United Kingdom and Brazil with companies operating in each of these countries and in cooperation with different investment funds.

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