Telefonica Mulls $2.4 Billion Submarine Cable Sale: Expansion
- Deal could help lower the Spanish telecom company’s debt
- Recent renegotiation of contracts leaves all options open
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Telefonica SA has begun talks with international investors to sell its submarine-cable network, Expansion reported citing unidentified market sources.
The Madrid-based company hopes to value the business at about 2 billion euros ($2.37 billion), or as much as 10 times the unit’s earnings before interest, taxes, depreciation and amortization, according to the sources. Profit before items for the underwater-cable business are slightly above 200 million euros, they said.