Telecom giant Telefonica has agreed to sell its stake in its Colombian unit to Millicom, a provider of fixed and mobile telecommunications services in Latin America, for US $400 million.

Millicom inked a binding agreement with Telefonica for the purchase of a majority stake in the Spanish operator group's Colombia business.

Telefónica has agreed with Millicom to sell all the shares it holds in Colombia Telecomunicaciones, representing 67.5% of its share capital, for approximately