Liberty Latin America and Millicom Worldwide Mobile will merge their Costa Rican operations. Liberty Latin America introduced on Thursday that Liberty Costa Rica will merge with Millicom Worldwide Mobile’s Tigo Costa Rica by way of an all-stock deal centered on boosting funding in fiber networks to ship enhanced providers within the nation.
Additionally Learn: Millicom and Telefonica Discover Merger in Colombia
Possession and Monetary Metrics
Beneath the all-stock settlement, Liberty Latin America and its minority companion in Costa Rica will maintain roughly 86 p.c of the brand new entity, with Millicom holding 14 p.c. The ultimate possession share will probably be confirmed at closing, the joint assertion mentioned.
As of December 31, 2023, the mixed operations reported an adjusted OIBDA of USD 255 million, served over 440,000 broadband subscribers, and had internet debt of USD 533 million. The merger goals to reinforce fiber community enlargement, increase competitors, and enhance digital providers in Costa Rica.
Strategic Objectives and Advantages
Liberty Latin America commented, “Costa Rica is a superb nation to function in, and Liberty Costa Rica is a powerful enterprise for us. By combining Liberty and Tigo, the mounted operations will speed up the transition to FTTH and allow us to ship distinctive high-speed providers for customers, present enhanced buyer experiences, drive innovation, and provide development alternatives for our individuals. With this transaction, Liberty Costa Rica will proceed to be a number one connectivity operator out there.”
“Our mixed operations will considerably profit the telecommunications sector by enhancing fiber community funding to assist speed up Costa Rica’s technological evolution in a extremely aggressive market,” Millicom mentioned.
“It creates a stronger, extra aggressive entity with the capability to fulfill accelerated technological adjustments, community enlargement, and repair enhancements, guaranteeing that long-term market situations stay aggressive whereas sustaining high-quality and invaluable providers for our clients in Costa Rica.”
Additionally Learn: Digi Communications to Purchase Nowo for EUR 150 Million
Completion Timeline
The transaction is predicted to be accomplished through the second half of 2025, topic to customary closing situations, together with regulatory authorisations.
