logo
Share SHARE
FONT-SIZE Plus   Neg

Telefonica, Colombian Govt. To Restructure Fixed, Mobile Business - Quick Facts

Telefónica S.A.'s (TEF,TDE.L) fully-owned Telefónica Móviles Colombia, S.A., the Colombian government and Colombia Telecomunicaciones, S.A. ESP entered into a final agreement to restructure their fixed and mobile business in Colombia. Such deals include the assumption by the Government of 48% of the payment obligations not yet due of Colombia elecomunicaciones, S.A. ESP to the Patrimonio Autónomo Receptor de Activos de la Empresa Nacional de Telecomunicaciones - PARAPAT, the company noted.

In addition, the agreements signed also comprise an amendment to the Operating Contract for the extension in 6 years, to 2028, of the payment obligations not yet due of Colombia Telecomunicaciones, S.A. ESP to the PARAPAT. As a result, the net financial debt which would be fully consolidated in the financial statements of the Telefónica Group, would fall by around 1.30 billion euros.

Upon the completion of the merger between Colombia Telecomunicaciones, S.A. ESP and Telefónica Móviles Colombia, S.A., Telefónica would hold 70% of the share capital of the resulting company while the Government would control the remaining 30%. Likewise, by virtue of the deals reached, the Government could increase its stake in the merged company in an additional 3% by 2015, based on its operating performance.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Saudi Arabian Oil Co., most popularly known as Saudi Aramco, is yet to finalize a date for its long planned initial public offer, but reports said, citing Saudi Arabian officials, that the IPO most likely would be conducted in the second half of 2018. Saudi Aramco Chief Executive Officer Amin Nasser told Bloomberg that the country has promised to reduce the overall tax rate... Dutch semiconductor equipment maker ASML Holding NV reported Wednesday significantly higher profit in its fourth quarter, with higher system sales, selling price and improved margin. Looking ahead, for the first quarter, the company sees sequentially lower net sales and margin. Retail giant Walmart, the nation's largest private employer with nearly 1.5 million associates in the U.S., on Tuesday announced the addition of 10,000 retail jobs this year.
comments powered by Disqus
RELATED NEWS
Trade TEF now with 
Follow RTT