Spanish telecoms giant Telefonica said on Tuesday it has sold its mobile unit in Chile to French holding company NJJ and Luxembourg-based Millicom, both owned by billionaire Xavier Niel, in line with Telefonica’s strategy of divesting from Latin America to focus on its core markets.
Under CEO Marc Murtra, who took over in January 2025, Telefonica has accelerated long-standing plans to reduce its exposure in Spanish-speaking Latin America, where profitability is lower than the cost of capital. Instead, it seeks to consolidate its presence in Spain, Brazil, Germany and Britain.
The Chile deal, which was signed and closed on Tuesday, had a fixed value of around $1.22 billion, Telefonica said in a statement, with an additional payment of $150 million linked to certain milestones in the Chilean telecoms market.
The transaction includes an immediate cash payment of $50 million and a deferred payment of $340 million to be paid based on Telefonica Chile’s financial results.
Telefonica Chile had net debt of 479 million euros ($571 million) at the end of 2025, the statement said.
NJJ is a holding company controlled by Niel, the founder of French telecom provider Iliad.
Millicom International Cellular S.A. is Niel’s Luxembourg telecom firm, which provides services in Latin America through its TIGO brand.
