March 13 (Reuters) - Spanish telecom company Telefonica agreed to sell its stake in its Colombian unit to Millicom for $400 million, as part of a strategy to gradually reduce its exposure to Latin America, it said on Wednesday evening.
The Spanish unit of Luxembourg-headquartered telecom Millicom will buy the 67.5% stake in the Colombian unit of Telefonica, both companies said in separate statements.
Telefonica has already divested from many markets in Latin America, where returns were lower than capital cost, to focus on Spain, Brazil, Britain and Germany.
Newly appointed Chief Executive Marc Murtra has said the company would complete a strategic review before the end of this year.
Last month, Telefonica sold its unit in Argentina and earlier this month media reported the company had started the process to sell its units in Mexico and Peru
($1 = 0.9192 euros)
Reporting by Joao Manuel Mauricio in Gdansk, editing by Inti Landauro and Tomasz Janowski
Source: Reuters