Telefónica has won an arbitration of 379.8 million dollars (357.9 million euros) plus interest of 5% as compensation for damages caused against the Republic of Colombia before the International Center for Settlement of Investment Disputes ( ICSID), according to This Wednesday the company reported to the National Securities Market Commission (CNMV).
Specifically, the international arbitration tribunal made up of a three-member panel, established in February 2018 after Telefónica initiated the international arbitration procedure against Colombia, has considered that the South American country “failed to comply with its obligation to grant a fair and equitable treatment of investments” of the Spanish multinational.
In said arbitration, Telefónica claimed damages caused by a series of measures by the Colombian State that affected the Spanish firm’s investments in its affiliated company Colombia Telecomunicaciones, where it has a majority stake.
The dispute arose from the application by the Colombian State of various measures to obtain the reversion of assets related to Telefónica’s telecommunications business in Colombia.
As a consequence of these measures, Telefónica was forced to pay the Colombian State the amount of 379.8 million dollars (357.9 million euros) in 2017.
Telefónica, which began a divestment process in many Latin American markets, reported on the start of talks with Millicom, which is listed on the New York Stock Exchange, to sell its stake in its Colombian unit for $400 million.
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