Telefónica has sold its Ecuadorian subsidiary to Millicom for $380 million as it continues to pursue an exit from Latin America.

News of a deal between the two companies was first announced earlier this year.

It has now been authorized by the regulators and continues Telefónica strategy to focus on Europe ahead of other markets.

Telefónica has been operating in Ecuador for more than 20 years.

“Ecuador showed us the power of technology when it is put at the service of people. We leave grateful and proud to have contributed to the country's digital development for more than two decades, supporting its cities and communities in crucial moments, and to leave behind a solid, modern operation ready for the future. We wish Millicom every success in this new stage that begins today,” said Alfonso Gómez, CEO of Telefónica Hispam.

This transaction is part of Telefónica's global asset portfolio restructuring, focused on strengthening its balance sheet and mitigating financial risks in the region.

Telefónica has sold off a large chunk of its Latin American assets in the last year.

Earlier this year, the carrier sold its Colombian unit for $400m to Millicom.

Telefónica sold its Peruvian unit for less than $1m to Integra TecInternational Inc (Integra Tec), taking a huge hit on the $2 billion the company spent to acquire the company back in 1994. In April, Spanish publication El Confidencial reported that Telefónica has hired Citi as an adviser to sell its Chilean business unit.

In February, Telefónica struck a deal to sell its Argentinian unit to Telecom Argentina for $1.2bn.