Latham & Watkins Advises Telefónica in US$380 Million Sale of Telefónica Ecuador

Telefónica Hispam has announced it reached an agreement with Millicom Spain, S.L. for the sale of 100% of its stake in Telefónica Ecuador, in a transaction valued at US$380 million (approximately €330 million, according to the current exchange rate). The transaction is subject to obtaining the corresponding regulatory authorizations. This transaction is part of Telefónica’s strategy to optimize its portfolio and progressively reduce its exposure in Latin America, focusing on key markets and the generation of sustainable value.

Latham has advised Telefónica on numerous recent transactions in Latin America. Latham represented Telefónica in its US$1.245 billion sale of its Argentina operations in February, and its US$400 million transaction with Millicom to acquire Telefónica’s controlling 67.5% equity stake in Colombia telecom service provider Coltel in March, its sale of Telefónica Móviles del Uruguay S.A. to Millicom Spain, S.L. for US$440 million, as well as transactions in Chile, Colombia, El Salvador, Guatemala, Nicaragua, and Panama.

Latham’s Latin America team has been at the vanguard of high-profile M&A deals in the region, including Davivienda’s combination with Scotiabank announced in January, Softys’ acquisition of Ontex’s Brazilian operations in March, GIP in its US$1 billion joint venture with Vale and WWE’s acquisition of Mexican lucha libre promoter AAA in April.

Latham & Watkins LLP represents Telefónica in the transaction with a team led by Latin America Practice partners Tony Del Pino, Ignacio Pallarés, and John Slater, with associate Francisco Lanusse, and assistance from Mapi Villanueva and Lisa Carral Flores. Advice was provided on intellectual property matters by partner Jeffrey Tochner, with associate Sebastian Moss; and on tax matters by partner Jordi Dominguez and counsel Blanca Vazquez de Castro.