Telefonica S A : Chile Agrees to Sell Majority Stake in Fiber Business

By Joshua Kirby

Telefonica SA said late Monday that its Chilean subsidiary Telefonica Chile has agreed to sell 60% of the shares in its fiber business InfraCo to a fund managed by KKR and Co.

The sale to KKR Alameda Aggregator values InfraCo at around $1 billion and will reduce the group's net debt by around 400 million euros ($486 million), the Spanish telecommunications company said. As part of the deal, Telefonica Chile will sell around two million fiber-equipped homes to InfraCo. Certain service-provision agreements are also included in the transaction.

The stake-sale is subject to antitrust clearance, Telefonica said.

Write to Joshua Kirby at joshua.kirby@dowjones.com; @joshualeokirby

(END) Dow Jones Newswires

02-23-21 0117ET