Telefonica reportedly hired investment bank JPMorgan to explore the sale of its Argentine subsidiary, which has attracted interest from several parties.

According to Spanish news outlet Expansion, potential buyers include French operator Iliad, Latin America-focused provider Millicom, as well as local Argentine investors.

Since late 2019, the Spanish telecoms giant has made moves to reduce its presence in the region, as part of a strategy to raise more cash to finance the build-out of 5G.

In addition to selling off its Costa Rican unit to Liberty Latin America in 2020, along with two other units in Central America and most recently entered into an agreement to offload its Colombia business to Millicom.

Bloomberg noted Argentina has proved to be a particularly challenging market for Telefonica due to high inflation and a weak economy.

The potential sale adds to a recent leadership change at the company as long-time CEO Jose Maria Alvarez-Pallete stepped down earlier this month after nearly nine years at the helm.

The shake-up followed a major restructure of the company’s shareholding, with Saudi operator stc Group acquiring a nearly 10 per cent stake in the business last year.

Telefonica is unlikely to progress on the potential sale in Argentina until new chief executive Marc Murtra reviews the company’s long-term strategic direction, added Bloomberg.