49 percent Telefonica Tech sold post summer 2021: KPMG and Morgan Stanley pilot the process and there are already interested funds - Telefónica is about to complete its transformation. The Spanish teleco follows the plan that it presented in November 2019 with which it would remodel its businesses, segregating its subsidiaries in Latin America and creating a new technology division. Now the time has come to accelerate the entry of investors into the latter.

Now, the entry of new investors in the multinational is a matter of time. Telefónica has just acquired the services of KPMG and Morgan Stanley to pilot the process,and there are already several private equity funds that have shown their interest, according to Cinco Días. The economic newspaper marks in red a date on the calendar: 49% of Telefónica Tech will be sold after summer.

In January of this year the economic press advanced that the process for the arrival of investors in the subsidiary would be delayed more than expected, since in the first place they were finishing the corporate restructuring. The legal figure that surrounds Telefónica Tech actually already existed: it reuses a historic subsidiary of the group such as the Spanish Technology Company, Comet, from the mid-80s.

49 percent Telefonica Tech sold post summer 2021

However, and although Telefónica Tech would initially host the IoT, cybersecurity and cloud businesses of the Spanish multinational, KPMG and Morgan Stanley have already been working with the operator since it constituted its Tech division - which happened in November 2019 -. The reason is that it has set up branches to carry out these activities.

49 percent Telefonica Tech sold post summer 2021: At the end of 2020, Telefónica Cybersecurity & Cloud Tech and Telefónica IoT & Big Data Tech were created. With this work carried out, now it is time to sell 49% of the company that groups these units, and that José Cerdán commands. The idea is that this happens after summer, according to Five Days.

49 percent Telefonica Tech sold post summer 2021

The same economic newspaper says that one of the interested would be Apax Partners, which sold Idealista to EQT for 1,300 million euros in the middle of last year. In fact, according to the aforementioned medium, the first valuations of Telefónica Tech would rise to 1,000 million, with which the teleco could reach up to 500 million euros.

That would help Alvarez-Pallete's company continue to reduce its debt. It has received offers of 1,800 million euros for its submarine cables and in January it placed 31,000 towers from Europe and America to American Tower in an operation that reached 7,700 million euros.

49 percent Telefonica Tech sold post summer 2021

In the results of the first quarter of the fiscal year, Telefónica announced that its technology division reinforced its growth with an increase in revenues of 25.1%, to 166 million euros, while continuing with the process of migration of services and the transfer of business and assets. In 2020 the division contributed about 1,200 million turnover, and the idea of the company is to contribute 2,000 million by 2022.

49 percent Telefonica Tech sold post summer 2021

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El Corte Inglés strengthens its finance division: the group finalizes a plan so that its card can be used in other businesses

El Corte Inglés seeks to expand the scope of its loyalty card. In this way and according to Expansión, the financial division of the group, controlled at 51% by Grupo Santander, would transform the product into a universal one that can be used in any large area or commerce to split the payment of purchases.

The department store card has more than 11 million cardholders, making it the most popular in Spain. Currently with it you can defer payments or finance purchases in establishments of the group, including Sfera, Bricor and Viajes El Corte Inglés and in certain affiliated establishments, especially gas stations.

The operation would gain momentum and could materialize after the summer. However, sources of El Corte Inglés point out that nothing is closed yet and that it is only a possibility of study.

The card, which was born in 1966, allows you to postpone purchases in establishments of the El Corte Inglés group for up to 60 days without interest. They are then debited to the holder's bank account on the last day of the following month. On the other hand, plastic also includes the revolving option, which allows you to have a credit line always open. In these cases, the average interest rate charged is 19.56% APR.

Since 2018, the company's financier has been selling a loan to cardholders for the acquisition of any product, whether or not El Corte Inglés (mortgages excluded), which, according to the newspaper, moves about 250 million annually.

Now, the premise of the group is to grow this business division. This new approach would be driven by taking advantage of the commercial possibilities offered by the European payments regulation PSD2. This regulation allows entities that are not banks to install payment functionalities associated with the mobile phone through apps.

In March, the department store chain reached an agreement with payment giant Mastercard to launch its first universal card. In this way it was known that El Corte Inglés had been in procedures with the Bank of Spain for about a year to become a financial institution.

In line with the above, a few months ago it was known that the company had registered the word "Bitcor": pun that combines the most popular of the cryptocurrencies and part of the name of the company. This could be the group's first step into the world of cryptocurrencies.