Santiago, Chile – After more than three decades operating in Chile, Telefónica has finalized the sale of its Chilean mobile unit to NJJ Holding and Millicom Spain, marking a significant shift in the Latin American telecommunications landscape. The move, confirmed this Tuesday, is part of a broader strategic plan by the Spanish multinational to gradually reduce its presence in Hispanic America and refocus on the European market. The sale raises questions about what will happen to Movistar customers in Chile, but initial indications suggest a smooth transition.
The transaction, valued at up to $1.365 billion including variable payments, represents a major restructuring of the Chilean telecom sector. NJJ Holding, controlled by French billionaire Xavier Niel, will hold a 51% stake, while Millicom Spain will control the remaining 49%, with cross-purchase options in place, according to Reuters. This acquisition introduces new international capital into the Chilean market, potentially fostering increased competition and investment.
Telefónica Assures Continuity of Service
Telefónica Hispam CEO Alfonso Gómez emphasized the company’s commitment to a seamless transition for Chilean customers. “Telefónica leaves in Chile a robust operation, a modern infrastructure and a platform prepared for the new shareholder to continue driving the country’s digital development on solid foundations,” Gómez stated, as reported in the source material. This message aims to reassure users of Movistar services that their connectivity and access will not be immediately disrupted.
The company has underscored that the existing infrastructure and current services will continue to operate without interruption under the new administration. This includes the network infrastructure supporting mobile services, as well as the fiber optic and television services offered to residential customers.
What Does This Imply for Movistar Customers?
One of the primary concerns among Movistar users centers on the future of their existing plans and contracts. According to information available, the Movistar brand is expected to continue functioning normally, as the deal is an acquisition rather than a merger with another Chilean operator. This suggests that customers will not be immediately forced to switch providers or adopt new branding.
In the short and medium term, no significant modifications are anticipated to current contracts, mobile plans, or home services like fiber optic internet and television packages. Existing conditions and pricing are expected to remain stable, providing a degree of certainty for consumers. However, long-term changes will depend on the strategic decisions of the new owners, NJJ Holding and Millicom Spain.
Financial Details of the Transaction
The initial payment for the acquisition is $50 million, with the potential for an additional $150 million contingent on achieving specific value-creation targets. Telefónica will likewise contribute to safeguarding the financial stability of the Chilean subsidiary upon the final closing of the agreement. The total potential revenue could reach approximately €1.156 billion, though a substantial portion will be realized through debt reduction and financial adjustments, according to the source material.
As of December 31, 2025, the net financial debt of the Chilean subsidiary stood at around €479 million. This debt will be factored into the overall enterprise valuation, meaning a significant benefit of the operation for Telefónica will be deleveraging, rather than an immediate cash influx.
Looking Ahead: A New Era for Chilean Telecommunications
The sale marks the end of a 35-year cycle for Telefónica in Chile, opening a new chapter under international ownership. While the immediate impact on consumers appears minimal, the long-term implications of this change in control remain to be seen. The new owners will likely pursue their own strategies for growth and innovation within the Chilean market, potentially leading to new service offerings and competitive dynamics.
The Chilean telecommunications market now has a new controlling stakeholder, while operational continuity for millions of customers is maintained, at least for the time being. The final closing of the transaction is expected to occur in the coming months, after which NJJ Holding and Millicom Spain will officially assume control of Telefónica Móviles Chile. Further updates regarding the transition and any potential changes to services will be communicated by the new owners directly to Movistar customers.
Disclaimer: This article provides information for general knowledge and informational purposes only, and does not constitute financial or investment advice.
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