TEF sells Otecel (Ecuador) to Millicom for $380M; debt reduced

Rhea-AI Filing Summary

Telefónica closed the sale of 100% of Otecel S.A. (Telefónica Ecuador) to Millicom Spain for a firm value of USD 380 million (approximately EUR 329 million at the current exchange rate) after receiving regulatory approvals and meeting agreed conditions.

The transaction reduces the Telefónica Group’s net financial debt by approximately EUR 273 million. The move aligns with Telefónica’s asset portfolio management policy and its strategy to reduce exposure in Hispanoamerica.

Insights

Telecom M&A Analyst

Debt reduced by EUR 273 million via Otecel divestment.

Telefónica completed the divestment of Otecel (Ecuador) to Millicom for a firm value of USD 380 million (about EUR 329 million). The filing states the deal closed after regulatory approvals and agreed conditions were satisfied.

The company reports a reduction in net financial debt of approximately EUR 273 million. This fits the stated strategy to trim Hispanoamerica exposure and manage the asset portfolio, with impact depending on the Ecuador unit’s prior scale within the group.

Key elements to track in subsequent disclosures include any proceeds reconciliation versus firm value and how the debt reduction flows through reported leverage metrics.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of October, 2025

Commission File Number: 001-09531

Telefónica, S.A.

(Translation of registrant's name into English)

Distrito Telefónica, Ronda de la Comunicación s/n,

28050 Madrid, Spain

+34 91-482 87 00

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F X Form 40-F

Telefónica, S.A.

TABLE OF CONTENTS

Item						Sequential Page Number
1.			Telefónica: Closing of the transaction related to Otecel.			2

TELEFÓNICA, S.A. (“Telefónica”) in compliance with the Securities Market legislation, hereby communicates the following:

OTHER RELEVANT INFORMATION

Further to the communication dated June 13, 2025, Telefónica informs that, once the corresponding regulatory authorizations have been obtained and after the fulfilment of the agreed conditions, Telefónica Hispanoamérica, S.A., a wholly owned subsidiary of Telefónica, S.A., has transferred today 100% of the share capital of Otecel S.A. (Telefónica Ecuador), to Millicom Spain, S.L., for a transaction amount (firm value) of USD 380 million (approximately EUR 329 million at the current exchange rate).

The closing of the transaction implies a reduction of the Telefónica Group’s net financial debt of approximately EUR 273 million.

As previously communicated, this transaction is part of the Telefónica Group’s asset portfolio management policy and is aligned with its strategy of reducing exposure in Hispanoamerica.

Madrid, October 30, 2025

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Telefónica, S.A.

Date:

October 30, 2025

By:

/s/ Pablo de Carvajal González

Name:

Pablo de Carvajal González

Title:

Secretary to the Board of Directors

FAQ

What did Teleff3nica (TEF) announce in its 6-K?

Teleff3nica closed the sale of 100% of Otecel S.A. (Teleff3nica Ecuador) to Millicom Spain after regulatory approvals and agreed conditions were met.

How much did Millicom pay for Otecel from Teleff3nica (TEF)?

The transaction amount (firm value) was USD 380 million, approximately EUR 329 million at the current exchange rate.

How does the Otecel sale affect Teleff3nica27s debt?

Teleff3nica states the transaction reduces the Group27s net financial debt by approximately EUR 273 million.

Who acquired Otecel (Teleff3nica Ecuador) from Teleff3nica (TEF)?

The buyer is Millicom Spain, S.L..

How does the Otecel divestment fit Teleff3nica27s strategy?

It aligns with Teleff3nica27s asset portfolio management policy and its strategy of reducing exposure in Hispanoamerica.

What ownership stake in Otecel did Teleff3nica sell?

Teleff3nica sold 100% of the share capital of Otecel S.A.