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Telefónica To Sell 40% Of Assets In El Salvador, Guatemala, Nicaragua, Panama

Telefónica (TEF, TDE.L) said Tuesday that it entered into an agreement with Corporación Multi Inversiones for the sale of 40% of the company's assets in El Salvador, Guatemala, Nicaragua, and Panama.

The value of the sale, which is subject to obtaining the necessary regulatory approvals, totals $500 million. The operation also includes the payment of an additional amount of up to $72 million, which will be determined by the evolution and the operational performance of the aforementioned assets in the coming years.

The implied multiple for the total amount of the transaction means 6.5 times EBITDA 2012 of the companies involvedin the operation.

Telefónica said it will keep control of operations in El Salvador, Guatemala, Nicaragua, and Panama, which will be merged into a joint venture.

by RTTNews Staff Writer

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