Millicom International Cellular has struck an agreement with Telefónica to acquire the company's Colombian unit for $400 million.
Latin American telecoms group Millicom has been in talks with the telco for several months over a deal.
Telefónica owns a 67.5 percent stake in the telco, while Colombia's government holds the remaining 32.5 percent stake in the carrier, which was founded in 1947.
However, Millicom has announced that it has agreed to purchase the remaining 32.5 percent of Coltel equity owned by La Nación and other investors at the same purchase price per share offered to Telefónica.
“This transaction strengthens our presence in Colombia, and with this strategic move, Millicom reaffirms its ongoing commitment to expanding connectivity and coverage, accelerating digital transformation, and actively contributing to Colombia's continued growth and competitiveness," said Millicom CEO Marcelo Benitez.
Telefónica has more than 24 million customers in Colombia, including close to 21 million mobile subscribers.
Millicom's Colombian subsidiary Tigo is Colombia's third-largest operator, with more than 15 million customers.
The Spanish carrier has been looking to consolidate its operations in Latin America since 2019 as it looks to cut overall debt and reduce exposure to currency swings.
Millicom acquired Telefónica's Panamanian, Costa Rican, and Nicaraguan mobile units in 2019 for a combined $1.6 billion.
Last month, Telefónica struck a deal to sell its Argentinian unit to Telecom Argentina for $1.245 billion, while it has also stepped up plans to sell its Mexican unit.
