Spanish company Telefónica (Movistar) is in the process of selling its operations in Costa Rica, Nicaragua and Panama to the company Millicom International Cellular (Tigo) for a total 1,455 million euros (approx.$1,650 million USD).

The information was confirmed by the Movistar Costa Rica headquarters, however, the transaction is still pending to be approved by each market’s regulations, the whole process could be completed in the second semester of 2019.

Movistar has consolidated as a leader in mobile services in Nicaragua and Panama, while in Costa Rica it is the second biggest mobile service provider with approximately 2.4 million total clients in this country. Millicom has operations in all three countries and expects that this will diversify and complement the services offered by the company in these markets.

Movistar had already sold back in January 24 its operations in Guatemala and El Salvador to Mexican company América Móvil (Claro) for $648 million; with this new sale Telefónica would be leaving the entire Central American market.

Even though the company had, at least in the case of Costa Rica, experienced a significant growth of close to 24% in the past year and has solid earning, the company has stated that this decision has the objective of organically reducing debt and strengthening the corporation’s balance which allows them to maintain a sustainable and attractive shareholder remuneration.

From the total 1,455 million euros the operations are being sold for, 503 million correspond to Telefónica Costa Rica, 573 million to Telefónica Panama and 379 million to Telefónica Nicaragua.