Spanish telco could raise €600 million from sale of data centre business

Telefonica this week confirmed that it is in talks that could lead to the sale of certain data centre assets, but did not comment on the €600 million price tag some sources have pinned on the deal.

In a short securities market statement, the Spanish incumbent responded to media speculation that it is close to selling its data centre business to investment fund Asterion Capital Partners.

"Telefonica informs that it is at an advanced stage of the negotiation process for the sale of some of its data centres, which may result in one or several transactions," the telco said. The statement follows a similar announced in February, in which the operator confirmed a data centre sale was a possibility.

The latest deal rumour came from Spain’s El Confidencial, which revealed that the €600 million deal with Asterion was analysed by Telefonica’s board at a meeting in Madrid on Wednesday.

The news outlet’s sources said Telefonica had received final offers for the business on 29 March. The process of selecting a winning bidder has taken a month due to the security issues associated with the business and the resulting conditions imposed on Asterion, they said.

El Confidencial said terms have already been agreed and Telefonica and Asterion will sign the final deal in a couple of weeks.