Home / Business and Economy / Chile Telecom Bonds Soar Amid Intense Takeover Bids
Chile Telecom Bonds Soar Amid Intense Takeover Bids
9 Feb
Summary
- Telefónica Chile's dollar bonds have seen significant gains this year.
- Several major telecom companies are reportedly interested in acquiring the company.
- A recent asset sale by Telefónica Chile bolstered investor optimism for a deal.
Telefónica Moviles Chile SA's dollar bonds have experienced a remarkable surge, outperforming all Latin American peers this year as multiple parties compete to acquire the company. The bonds due in 2031 have seen a substantial increase in value, reaching approximately 75.2 cents on the dollar last week, up from 57.5 cents at the start of the year. This rally is largely attributed to reports indicating significant interest from potential buyers.
Key players reportedly vying for the acquisition include América Móvil, controlled by Mexican billionaire Carlos Slim, Millicom International Cellular SA, and Chilean mobile operators WOM and Entel SA. Investor confidence was further bolstered last month when Telefónica Moviles successfully sold its stake in the fiber-optic business Onnet to another Telefónica unit for $350 million. This transaction is expected to reduce debt and improve the company's financial ratios, positioning it more strongly for a potential sale.
