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
Galaxy Entertainment Group (WYNN) Friday announced that it has agreed to purchase 5.3 million primary shares of Wynn Resorts Ltd. at a price of $175 a share, resulting in $927.50 million of gross proceeds to Wynn Resorts. The two sale, combined with a previous sale effectively eliminate ownership of founder and former CEO Steve Wynn in Wynn Resorts. Starbucks wants to be more efficient but it is risking the fragile loyalty of its most devoted customers. The ubiquitous chain plans a major push to get coffee lovers to use its mobile app to place their orders, but regulars prefer to buy their lattes by waiting in the queue. According to reports,... Taco Bell, the Mexican fast-food chain owned by Yum Brands Inc. (YUM), Thursday said it will start selling tortilla chips in grocery and convenience stores starting May. The chips will be available in Fire and Mild sauce packet flavors and also in a Classic flavor. "This launch of our first line...
comments powered by Disqus
Follow RTT