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Broadband

Liberty Latin America to acquire 80% of Costa Rica's Cabletica

Tuesday 13 February 2018 | 08:46 CET | News

Liberty Latin America, the newly split-off unit of Liberty Global focused on Latin America and the Caribbean, has announced an agreement to acquire 80 percent of Costa Rican cable operator Cabletica for around in an all cash deal. Cabletica is valued at an enterprise value of CRC 143 billion (around USD 250 million), a multiple of 6.3x of its fiscal year EBITDA including projected cost synergies, with current owner Televisora de Costa Rica set to retain the remaining 20 percent stake at close.

Cabletica provides TV, broadband internet and fixed-line telephony services to residential customers, with its hybrid fibre-coaxial network passing around 562,000 or 40 percent of the homes in Costa Rica at 30 September. The company served a total of 207,000 customers at the end of September, who subscribed to 327,000 services.

Liberty Latin America added that it intends to finance the acquisition through a combination of incremental debt borrowings and existing liquidity. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close during the second half of 2018.



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