Telefonica Tech was unveiled during Telefonica’s 2019 restructuring
Telefonica is considering the sale of a stake in its technology unit Telefonica Tech, which provides the management of cloud operations on Microsoft Azure and AWS, as well as offering cybersecurity services and IoT solutions.
According to initial reports from Bloomberg, Telefonica have been approaching investment funds to gauge their interest in buying an undisclosed stake in the unit.
The entire Telefonica Group is valued at around €22 billion, with net debt of €31.4 billion. According to sources, the Telefonica Tech could be valued at around €2 billion if the deal goes ahead.
Although the talks are still ongoing, there is no guarantee that the company will give the divestment the green light, according to sources.
Last month, Saudi Arabia’s largest telecoms operator STC group acquired a 9.9% stake in Telefonica worth €2.1 billion, which allowed them to become the company’s largest shareholder. There has been indication at this stage as to whether STC have approved the possible sale of the tech unit.
Answers will presumably be presented by Telefonica CEO Jose Maria Alvarez-Pallete alongside a new three-year strategic plan set to be announced in November, with the company planning its first Capital Markets Day in over a decade.
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