Benzinga | Oct 5, 2021 04:54PM EDT

Telefonica Weighs Stake Sale In Spanish Fiber Network: Bloomberg

* Telefonica SA (NYSE:TEF) is in discussions with potential advisers about a carveout of Spanish fiber network, including a stake sale, Bloomberg reports.

* Any transaction could value a standalone Spanish fiber business at around (euro)15 billion ($17.4 billion). A deal is not likely before 2022.

* Telefonica announced in late 2019 its plan to sell assets to reduce debt. As debt has dropped, it aims to sell its infrastructure assets to raise money for new investments while capitalizing on a solid appetite for the asset class.

* In July, Telefonica agreed to sell a stake in its Colombian fiber-optic broadband network to private equity firm KKR & Co, marking its fourth such deal since last year.

* Telefonica also forged joint ventures to deploy fiber in countries including Germany and Brazil.

* Price Action: TEF shares closed higher by 1.06% at $4.78 on Tuesday.