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Telefónica to Sell Movistar Mexico to OXIO-Led Consortium for $450 Million

Regulatory approval in Mexico will determine the timing of the handover.

Overview

  • Telefónica Hispanoamérica, which announced Tuesday that it would sell 100% of Pegaso PCS and Celular de Telefonía, agreed to a $450 million firm value deal with Melisa Acquisition.
  • Melisa Acquisition is led by cloud telecom platform OXIO and investor Newfoundland Capital and plans to keep the Movistar brand and current leadership while moving operations onto OXIO’s Telecom-as-a-Service platform.
  • The transaction transfers roughly 21.7 million mobile lines, and Movistar says service will continue without changes to numbers, plans or coverage during the transition.
  • Closing requires clearance from Mexican telecom and competition regulators and standard purchase price adjustments before control changes hands.
  • The sale advances Telefónica’s exit from parts of Latin America after it returned spectrum and shifted to AT&T’s network in Mexico, where low average revenue per user and fast-growing MVNOs squeezed results, and the $450 million price sits below recent reports of a $600 million ask.