Holland & Knight acts for Telefónica in Mexico data centre sale


Holland & Knight is advising Spanish telecommunications company Telefónica Group on the sale of its data centre in Mexico to Asterion Industrial Partners, a pan-European infrastructure fund manager, as part of a global sell-off of centres in seven countries. 



The deal is part of a global transaction that includes 11 data centers worth a total €550 million with the installed service capacity of 29 megawatts, located in Argentina, Brazil, Chile, Spain, Mexico, Peru and the US. 



The deal is expected to close in the following month.

The sale also includes the signing of a housing services agreement that ensures Telefónica will continue to provide and manage the services it has been offering its customers from these centres and will maintain the direct relationship with them. In turn, this agreement will allow Asterion to leverage Telefónica Group’s sales network to market the remaining capacity of the data centres, the law firm said.

The transaction is part of Telefónica’s strategy to reduce debt and maximize shareholder profits. The company expects to generate capital gains, before taxes and non-controlling interests, of around €260 million from the sale.

Holland & Knight Mexico City-based partner Luis Rubio Barnetche (pictured) and senior counsel Selene Espinosa acted as counsel to Telefónica.

“This is a significant transaction for Telefónica and part of its overall strategy to reduce debt moving forward,” Rubio said. 

“The deal is extremely complex because of its multi-jurisdictional nature, technical components, and unique provisions regarding the continuation of service to customers.”