Telefónica has taken a decisive step in its strategic restructuring by hiring Citibank to handle the sale of its operations in Chile. This decision is part of a broader shift by the company to withdraw from less profitable Latin American markets. The move comes as Telefónica seeks to focus more on regions where they see better returns on their investments.

The anticipated sale of the Chilean business is expected to result in a capital loss for Telefónica, similar to its previous divestiture in Peru, which also sold at a significant loss relative to its original purchase price decades ago. This underscores the financial challenges Telefónica faces in regions where returns have fallen short of the cost of capital.

In aligning with this strategy, Telefónica aims to concentrate its efforts on core markets including Spain, Brazil, the United Kingdom, and Germany. As reported by Reuters, this reorientation reflects the company's goal to optimize resources and improve financial performance by focusing on stronger, more profitable markets.