Spain’s Telefonica plans to sell minority stake in tech unit, Cinco Dias says

Spanish telecoms operator Telefonica (TEF.MC) plans to raise as much as 500 million euros ($591.35 million) with the sale of a minority stake in its technology unit, Cinco Dias newspaper reported on Wednesday, citing financial sources.

Telefonica has hired advisor KPMG and investment bank Morgan Stanley and potential buyers include private equity funds such as Apax Partners, the newspaper said.

Telefonica is ready to sell up to 49% of the unit, which is initially valued at 1 billion euros. The unit includes cybersecurity, Internet of Things an cloud computing operations, Cinco Dias said.

The sale would be part of a wider Telefonica plan to reduce its debt by selling assets.

A spokesperson for Telefonica declined to comment.

($1 = 0.8455 euros)