Reuters reports, citing El Confidencial, that banking giant Citi has been brought in to advise on a potential deal, with the telco expected to take a loss on the sale.
Telefónica first entered Chile back in 1990, after it picked up a majority stake in Compañía de Teléfonos de Chile (CTC).
By the turn of the century, its mobile operations in Chile were consolidated under the Movistar brand, and it would later offer fixed-line and internet services.
Telefónica’s success in Chile would later wane following increased competition from rivals like Entel and América Móvil (Claro).
The likes of América Móvil and Liberty Latin America are believed to be interested in acquiring Telefónica’s Chilean business.
Reports of Telefónica’s exit in Chile come as the telco exits several Spanish-speaking Latin American markets amid a shift in focus on core markets like Germany, Spain and the UK.
Telefónica sold its controlling stake in Coltel to Millicom in March, and struck a deal to sell its Peruvian business in April to Integra Tec.
Attempts to sell its Argentinian arm have hit a stumbling block, however, after the Milei government blocked the sale over concerns of a potential market monopoly for the Clarin Group-owned Telecom Argentina.
