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Ezentis signs $64 mln Telefonica Peru deal
January 3, 2013 / 1:50 PM / 5 years ago

Ezentis signs $64 mln Telefonica Peru deal

MADRID, Jan 3 (Reuters) - Loss-making Spanish telecoms and technology group Ezentis, which has shifted its focus to growth markets in Latin America, has signed a 48 million euro ($64 million) contract with Telefonica in Peru.

Ezentis said on Thursday its Peruvian arm, Calatel, signed a four-year contract with Telefonica Peru to provide services.

The company, which refinanced its debt last year to help turn the business around and move toward profit, had flagged Brazil and Colombia as important markets. The company made a loss of 1.1 million euros in the nine months to September, compared with a 101 million loss in the 2011 period.

Ezentis, which operates in several Latin American countries, including Chile and Panama, Last month won an electricity contract worth 28 million euros in Argentina, another market it has said was key to its growth plan.

Ezentis plans to raise 20 million euros in a capital increase from Jan. 8-23.

Its shares were up 8.2 percent at 1340 GMT, having fallen 39 percent in the past year.

Telefonica itself transferred about half of the shares of its Peruvian unit to its Latin American holding company in an internal deal worth $1.5 billion last month, as it moves towards listing up to 15 percent of its Latin American business. ($1 = 0.7553 euro) (Reporting by Jose Elias Rodriguez; Writing by Clare Kane)

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