Spanish telecom operator Telefonica said it would cut its debt by €200 million after selling a controlling stake in its optic fibre network in Colombia to buyout fund KKR.

The Spanish company plans to spin off the unit and keep a 40% stake, while a local unit of KKR would take the rest.

The operation values the fibre network in Colombia at $500 million.

KKR intends to expand the coverage to 4.3 million households in the country by 2024 from 1.2 million at the moment, the buyout fund said in a statement.

The transaction still requires regulatory approvals, both companies said.

The sale is part of a wider Telefonica plan to reduce its debt by selling assets.