The potential sale seems to value the division at more than €2 billion
Bloomberg reports that Telefónica is contemplating selling a stake in Telefónica Tech. The unit provides management of cloud operations on Microsoft Azure and AWS, and cybersecurity services.
It is far smaller than Telefónica’s core telecoms business, but is growing faster and those close to the action reckon the sale of a stake would value the unit at more than €2 billion. The entire group is valued at about €22 billion, with net debt of €31.4 billion at the end of the end of 2022.
Telefonica’s shares remain in the doldrums, so the sale of a stake in Tech would generate capital and emphasis the group’s focus on more profitable sectors.
However, Telefónica is apparently also mindful that it would benefit the group to hold onto to the whole unit until it is bigger and more valuable. Rumours of the operator’s intention to sell a stake in Telefónica Tech are not new – there was similar speculation in summer 2021.
stc recently acquired a 9.9% stake in Telefónica, and made it plain it was particuarly attracted by the Tech division. CaixaBank and BBVA, stalwarts of corporate Spain, are the next largest shareholders.
Next month, Telefónica’s Chair and CEO. Jose Maria Alvarez-Pallete (pictured), is due to announce a new, three-year strategic plan for the group. A central plank of the current strategy was to reduce debt.