Telefónica has agreed to sell its troubled Peruvian unit for 3.7 million Peruvian soles ($991,000) to Integra TecInternational Inc (Integra Tec).

The sale was confirmed by Telefónica's Peruvian unit over the weekend.

It comes less than two months after the carrier's Peruvian unit filed to begin voluntary insolvency proceedings.

At the time, the company blamed its situation on challenging tax payments, while claiming administrative decisions have "placed the company in a position of competitive disadvantage in a particularly challenging market environment."

Integra Tec has acquired Telefónica's entire 99.3 percent stake in the unit, and will take on the $1.41 billion debt that Telefónica's Peruvian unit owes the local tax agency and bondholders.

Integra Tec has a strong footprint in Latin America, spanning the telco, utilities, media, energy, chemical, and natural resources industries.

The company has appointed Germán Ranftl as its new chairman of the board, who will lead the restructuring process.

Telefónica serves more than 13 million customers across the country and has been operating in Peru since 1994 when it acquired the then-state-owned operator for about $2bn.

The planned exit will further reduce Telefónica's presence in Latin America, which is in line with the carrier's strategy to consolidate its overall business.

Last month, the carrier reached an agreement to sell its Colombian unit for $400m to Millicom International Cellular.

In February, Telefónica struck a deal to sell its Argentinian unit to Telecom Argentina for $1.245bn, while it has also stepped up plans to sell its Mexican unit.

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 $1.6bn.