Spanish telecom major Telefonica SA (MCE:TEF) is pondering a potential offload of its Irish mobile arm, O2 Ireland, which has garnered attention from suitors, the Financial Times reported, quoting a person in the know.
According to the source, Telefonica has received “expressions of interest” in the business, which it was keen to consider. One of the suitors was said to be Hong Kong-based investment holding company Hutchison Whampoa Ltd (HKG:0013), the owner of rival operator Three in the country.
Another insider told the Financial Times that no sales process was ongoing and that there was no assurance that the Spanish company would pursue a transaction.
Telefonica’s CFO Angel Vila recently said, as quoted by the paper, that the group could seek to trim debt also inorganically, implying disposals.
An offload of O2 Ireland could fetch EUR700m (USD910.7m), the paper said.