Thursday , March 4 2021

Telefónica will set up a subsidiary to sell its data centers up to € 1,000 million



Telecommunications

The company has 25 data centers in nine countries where it provides services for Telefónica customers and internal systems in Spain and Europe.

The pressure on José María Álvarez-Pallete to reduce Telefónica's debt is included. The company has designed the preliminary plan to make cash with the data processing company, according to financial sources.

Telefónica will set up a company to pack the business, as data centers are distributed to many of its affiliates. The operator explains in the 2017 accounts that Telefónica España and Telefónica Hispanoamérica include the business data of the data centers in Spain and Chile respectively. Before counting as "other companies," the Spanish newspaper Cinco Días said.

Once this is done, the sales note will be published, which will include the total or partial sale of the new subsidiary. Merrill Lynch Bank of America is Telefónica's signature for the sale of up to 1,000 million euros. A spokesman for Telefónica refused to comment on this information. On November 6, Bloomberg said the company was considering divestiture.

The company has 25 data centers in nine countries, offering services to customers and internal Telefónica systems in Spain and Europe. With these, it offers cloud services to businesses through eight locations in Spain, three in Brazil and the same number in Colombia and Ecuador.

It also has centers in Peru (2), Chile (2) and Argentina (2), as well as a large center in Miami (United States) and another in Mexico. It offers, among other things, server hosting services, digital archiving and business continuity.

The company has many open fronts aimed at reducing its debt. In addition to data centers, Mexican and Central American subsidiaries are trading. The latter controls 60%. At that time, he already tried the public records of Argentinian and British affiliates and Telxius in 2016, but I can not give it up for a number of reasons.

On November 8, he sold 161 million euros to the Antares insurer in Catala Occidente. It made capital gains of € 90 million with the operation. Telefónica also sold two subsidiaries in the digital sector, Tokbox and Digital Inc.

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