KKR, Telefonica team up to create digital infrastructure company in Colombia

  • KKR (NYSE:KKR) announces an agreement with Telefonica Colombia, a subsidiary of the leading Spanish telecom group Telefonica (NYSE:TEF), to establish Colombia's first independent nationwide open access wholesale digital infrastructure company.
  • The newly formed company to offer open access wholesale connectivity with modern fiber optic technology for all internet service providers in Colombia, including Telefónica.
  • As part of the pact, KKR will acquire a majority stake in Telefonica 's existing fiber optic network, the largest in Colombia, and make the network open access through a newly established independent entity, which KKR will control as the majority shareholder. Telefonica will have 40% stake in the new company.
  • The company will be run independently by a local team in Colombia but brings together the expertise of both KKR and Telefonica to build and operate Colombia's premier digital infrastructure network.
  • Upon closing of the transaction, the new company plans to expand existing fiber optic coverage from ~1.2M homes today to, at minimum, 4. 3M homes by the end of 2024.
  • KKR's large direct investment in Colombia with a transaction value of ~$500M affirms its long-term commitment to the region and aims to to accelerate ultra-fast digital connectivity to improve quality and coverage for Colombians nationwide, more than quadrupling Telefónica's existing fiber optic network.

    Over the current book year the company from Madrid's total revenue could be around 39.23 billion euros (consensus estimates). This is slightly lower than 2021's revenue of 43.08 billion euros.

    Historical revenues and results Telefonica plus estimates 2021

    aandelenanalyse

    The analysts expect for 2021 a net profit of 2.32 billion euros. For this year the consensus of the result per share is a profit of 55 cent. So the price/earnings-ratio equals 7.35.

    Huge dividend Telefonica

    Per share the analysts expect a dividend of 29 cents per share. The dividend yield is then 7.18 percent. The average dividend yield of the telecommunications companies is a good 4.14 percent.

    Based on the current number of shares Telefonica 's market capitalization equals 22.62 billion euros. 18

    Historical stock prices Telefonica past 10 years

    stock graphs telefonica

    At 13.17 the stock trades 1.1 percent higher at 4.04 euros.

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