Marc Murtra, president of Telefónica, insisted that the telecom’s idea is to focus on its main markets, that is, Spain, Germany, the United Kingdom and Brazil.
MADRID, Nov. 5. (EUROPA PRESS).- The president of the spanish company Telefónica, Mark Murtraconfirmed yesterday that the company will also exit Venezuela, Mexico y Chile within the framework of the strategy to reduce its exposure to Latin America.
“Hispam for us includes Chile, Mexico y Venezuelaand we will leave Latin America“, assured the president of Telefónica about the disinvestment process in the region, which resulted in the sale of subsidiaries in Argentina, Peru, Uruguay, Ecuador y Colombia.
Although the company had already acknowledged receiving offers for its business in Chile, it had not yet made a conclusive statement about the option of leaving Venezuela and Mexico.
However, Murtra did not reveal the deadlines to fully execute the exit from Latin America and insisted that the telecom’s idea is to focus on its main markets, that is, Spain, Germany, the United Kingdom and Brazil.
Regarding the possibility of ceasing to be listed on Wall Street, a move that would respond to the company’s intention to simplify its business, the telecom’s financial director, Laura Abasolo, pointed out that “there is no formal decision made,” although she acknowledged that “any initiative” is being analyzed.
“There is no formal decision made, but we are analyzing any simplification initiative and the advantages of having American Depositary Receipt (ADR) on the New York Stock Exchange. Within that we will make our recommendation and, if necessary, the decision could be made in the Board. There is no decision made, but there is an analysis done, because we are analyzing any simplification and greater agility initiative in all areas of the company,” Abasolo explained.
The telecom landed on the New York Stock Exchange almost 40 years ago, on June 12, 1987, when it became the first Spanish company to be listed on Wall Street.
In the event that Telefónica finally leaves the New York Stock Exchange, the decision would be announced through the National Securities Market Commission (CNMV) and the United States Securities and Exchange Commission (SEC).
Sale of copper network assets
On the other hand, the CEO of Telefónica, Emilio Gayo, pointed out that the company’s new strategic plan contemplates savings of around three billion euros by 2030 and that this amount includes the sale of assets linked to the shutdown of the company’s copper network in Spain.
Along these lines, regarding the possibility of the telecom selling its headquarters on Gran Vía in Madrid, Abasolo explained that he is considering the possibility of getting rid of assets that are not strategic for the business.
On the other hand, Gayo also highlighted that Telefónica Tech must be the “growth engine” of the company in terms of digital services.
“What we intend is to grow its portfolio of products and services. We still have areas to complete, both in cloud as in cybersecurity or IoT (internet of things) […] We have to make it as efficient as possible and, obviously, we are making improvements in Telefónica Tech’s processes, as in the rest of the group’s units, to be more efficient,” the manager stressed.