• Telefonica is weighing options such as an IPO of phone towers
  • Plan could include towers in Spain, Latin America and Germany

Telefonica SA is working with financial advisory firm TAP Advisors as Spain’s biggest phone company weighs options to raise funds from its infrastructure assets, according to people with knowledge of the matter.

Telefonica is working on a plan that could lead to an initial public offering of its phone towers, and may include assets in Spain, Germany and Latin America, the people said, asking not to be identified because the deliberations are private. No final decision has been made and Telefonica could still decide against any transaction, they said.

Telefonica is reviewing all of its infrastructure assets as it seeks to raise cash and compensate for lagging profit in Spain and currency devaluations in Latin America. A carve-out of the business would follow similar moves by Telecom Italia SpA, which spun off its tower unit in an IPO earlier this year, and billionaire Carlos Slim’s America Movil SAB, which created a separate company in April to manage its mobile infrastructure.

Representatives for TAP and Telefonica declined to comment.

Cellnex Telecom SAU may be interested in buying part of Telefonica’s 60,000-strong tower portfolio, people familiar with the matter said earlier this month.

TAP is a strategic advisory firm that specializes in telecommunications assets. The company has advised T-Mobile US Inc., Brazil’s TIM Participacoes SA and Verizon Communications Inc. on tower transactions.

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