L&W advises Telefónica and CMI on the sale of its subsidiary in El Salvador

Latham & Watkins´ cross border team has advised Telefónica and Corporación Multi Inversores (CMI) on the sale of its subsidiary in El Salvador for $144 million to the British fund General International Telecom Limited (GITL)

Latham & Watkins has provided legal advice to Telefónica S.A., a leading global telecommunications company, and the family group Corporación Multi Inversores (CMI) on the sale of its subsidiary Telefónica Centroamérica Inversiones S.L. in El Salvador to the British fund General International Telecom Limited (GITL), as part of the company’s divestment plan. Prior to the sale of the entire share capital of Telefónica Móviles El Salvador, of which it owns 99.3%, the subsidiary was owned, directly and indirectly, 60% by Telefónica and 40% by CMI.

The transaction is pending approval from the regulatory authorities in El Salvador. The deal value of the transaction is seven times the company’s OIBDA in 2020. The sale of the Salvadoran subsidiary is part of Telefónica’s divestment plan in which Latham & Watkins has already advised the company on other transactions in Latin America.

Latham & Watkins LLP represents Telefónica and CMI in the transaction with a cross-border deal team led by Madrid office partner Ignacio Pallarés (pictured left) and New York partners Tony Del Pino and Jeff Tochner, with associates Alan Rozen and Francisco Lanusse. Advice on Tax matters was provided by Madrid partner Jordi Domínguez (pictured right), with associate Blanca Vázquez de Castro. New York associate Pelin Serpin advised on Intellectual Property matters.