MercoPress. South Atlantic News Agency

Telefónica del Perú leaves the country amid bankruptcy proceedings

The sale follows Telefónica's divestments in Argentina and Colombia

Telefónica has sold its Peruvian subsidiary, Telefónica del Perú, to Argentine company Integra Tec International for approximately US$ 992,000, marking its exit from the Andean country after three decades. The sale, part of Telefónica's strategy to reduce Latin American exposure, follows divestments in Argentina and Colombia.

Telefónica del Perú, holding 99.3% of shares, faced a financial crisis, entering bankruptcy proceedings in February. The deal includes Integra assuming over € 1.2 billion in debt and a commitment to buy the remaining 0.7% shares via a public tender offer. A € 370 million credit facility remains available to support operations, with disbursements split between Telefónica Hispam and Integra.

”Today Telefónica Hispanoamérica, a wholly-owned subsidiary of Telefónica (Telefónica Hispam), has sold all the shares it holds in Telefónica del Perú, representing approximately 99.3% of its capital stock, to Integra Tec International,“ the company announced in a statement. It also admitted that ”the price has been determined considering the situation of Telefónica del Perú and the context of the agreement reached.“

This is the third divestment recently carried out by the Spanish multinational in the Latin American subcontinent, after the sale of its Argentinean subsidiaries to Telecom for € 1.2 billion and its Colombian subsidiary to Millicom for € 367 million.

As per the new agreement, should the Peruvian government or regulators impose any obstacle to the transaction, the conditions imposed on the sale would fall on the buyer.

Integra said that, in addition to assuming the portfolio of 13 million users, its main objectives include maintaining and expanding telecommunications services, restructuring TdP's debt, and implementing a business plan. Integra ”will seek to establish a constructive dialogue with all parties involved, including the government and creditors, to ensure that the transition is as smooth as possible”.

As part of the transition, Germán Ranftl has been appointed as the new chairman of the board of Telefónica del Perú. Ranftl, CFO of leading Argentine electricity distributor Edenor, will lead the company's financial restructuring under the Ordinary Bankruptcy Restructuring Process (PCO-R) and per current regulations to stabilize the company.

In addition, TdP's current management team, led by Elena Maestre, will stay on board “to preserve continuity in the provision of services and to strengthen the confidence of users, suppliers and other stakeholders.”

Integra Tec has highlighted its experience in Latin America in sectors such as telecommunications, utilities, media, energy, chemicals, and natural resources. It also has a track record in the recovery of companies in financial difficulties.

Telefónica del Perú filed for insolvency proceedings on February 14 to address a financial crisis and resolve tax lawsuits totaling over €1 billion with Sunat, Peru's tax authority. The subsidiary reported losses of € 872 million in 2024, a significant increase from the prior year, alongside reduced revenues and substantial debt of € 1.24 billion. Sunat is the largest creditor, followed by bondholders. Once approved, the insolvency process will involve a Creditors' Meeting to decide on a debt restructuring plan.