MADRID (Reuters) - Spain’s Telefonica (TEF.MC) has begun the process to eventually list its Argentine subsidiary on the Buenos Aires stock exchange, a move aimed at raising funds as the group seeks to extend its fiber optic network and cut debt.
The Spanish telecommunications company said in a recent filing to the Argentine market regulator that it had called a shareholder meeting on April 16 to approve the listing. The unit is valued at around 4.7 billion euros ($5.8 billion), including debt, according to Barclays.
The Spanish company was analyzing options to increase the value of its asset portfolio, including that of Telefonica Argentina, a Telefonica spokeswoman said, but declined to give further details.
Telefonica’s debt stood at 48.6 billion euros at the end of December, down 1 billion euros from three months earlier thanks to improving cash flow and the company has pledged to reduce its debt pile further this year.
Reporting by Andres Gonzalez; Writing by Paul Day; Editing by Sonya Dowsett and Susan Fenton