Telefonica continued to rationalise its Latin American operations, selling its Peruvian unit to Integra TecInternational (Integra Tec) for PEN3.7 million ($991,768).

The operator’s Telefonica Hispanoamerica unit announced the deal was signed and closed yesterday (13 April), and covered its entire stake along with a loan it made in February to keep the Peruvian business running while it moved to restructure through a bankruptcy process.

Telefonica Hispanoamerica hailed the sale for maintaining its service to more than 13 million customers in Peru.

Integra Tec appointed German Ranftl as chair of Telefonica del Peru to oversee a restructuring process, with Elena Maestre continuing to lead its existing management team.

Telefonica Hispanoamerica explained the Peruvian operator will still have access to a PEN1.5 billion credit facility it arranged as part of the bankruptcy process.

At the time of initiating the voluntary bankruptcy process, Telefonica Hispanoamerica explained historic tax issues and administrative decisions left the Peruvian business “at a competitive disadvantage” and Bloomberg reported the operator had failed in previous bids to sell the unit.

The deal also involves an “indirect transfer of control” of shares the unit holds in rural operator Internet para Todos.

Telefonica Hispanoamerica stated Integra Tec brings “extensive experience” of Latin American telecoms, utilities, media, energy, chemical and natural resources industries, along with “the recovery of companies facing financial difficulties”.

It added Integra Tec is committed to expanding Telefonica del Peru’s services, restructure its debt and deliver a solid capital structure.

The Peru move follows reports its unit in Mexico is up for sale alongside planned deals in Argentina and Colombia.