TELEFÓNICA WILL REDUCE BY 1,4 BILLION EUROS ITS DEBT AT THE END OF Q2 2012

TELEFÓNICA WILL REDUCE BY 1,4 BILLION EUROS ITS DEBT AT THE END OF Q2 2012

Telefonica Spanish telecommunications giant revised upwards the planned cut its debt by the merger of its mobile phone business in Colombia.

Following the transaction, Telefónica will reduced by 1,4 billion Euros its financial debt at the end of Q2 2012, that at the end of Q1 was 57.131 million. In a significant event on Monday, the Spanish group said the transaction will reduce debt by that ammount versus an initial estimate of 1,300 million euros.

Telefónica has complete the merge of Telefónica Móviles Colombia and Colombia Telecomunicaciones. The resulting company will be controlled 70% by the Spanish multinational, while the Colombian government will keep the remaining 30%, as reported by the company led by Cesar Alierta to the National Securities Market Commission (CNMV).

Moreover, the integration of both companies will lead the second largest operator in the Latin American country and will enable Telefonica make "significant synergies in the coming years", as explained by the company.

In Colombia the company currently is the second mobile operator following the leader Claro, and is also competing in fix telephone services with companies like Claro and locals Une and ETB.