Millicom International Cellular has struck an agreement with Telefónica to acquire the company's Colombian unit for $400 million. Latin American telecoms group Millicom has been in talks with the telco for several months over a deal.

Telefónica noted its Hispam division- which includes all of its Latin American operations except Brazil- remains a significant revenue generator

Spanish telecom company Telefonica agreed to sell its stake in its Colombian unit to Millicom for $400 million, as part of a strategy to gradually reduce its exposure to Latin America, it said on Wednesday evening.

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