The proposed sale of Telefonica's fiber optic network stakes in Peru to private equity firm KKR and Chilean telecommunications company Entel, initially announced in July 2023, has been terminated, as per Entel's regulatory filing on Thursday.

In a separate communication to the Peruvian stock market regulator, Telefonica acknowledged that discussions with both Entel and KKR are still ongoing.

The original agreement, disclosed in July 2023, entailed Telefonica divesting a 54% stake in its fiber network to KKR and a 10% stake to Entel.

Entel indicated that the deal fell through "due to the breach of certain closing conditions," although it did not provide further details.

In the recent past, Telefonica has been actively involved in the sale of various assets with the primary objective of reducing its outstanding debt and securing the necessary financial resources to support the significant investments required for the advancement of 5G mobile network infrastructure.

Although Telefonica has chosen not to disclose the specific financial details of the transaction, it has confirmed that the agreement will result in a reduction of its debt by 200 million euros, equivalent to approximately $217.8 million.

Furthermore, according to a reliable banking source with knowledge of the transaction, the overall valuation of the network in question stands at approximately 550 million euros, taking into account the associated debt.