Lumen Technologies, formerly known as CenturyLink, has confirmed an agreement to sell its Latin American business to investment firm Stonepeak for USD 2.7 billion. AustralianSuper, Australia's largest pension fund, is also investing alongside Stonepeak in the transaction. Under the terms of the deal, Lumen’s Latin America business will operate as an independent, US-based portfolio company of Stonepeak and its leadership team and organisation will remain in place, led by Hector Alonso, Lumen's president for the region.
In its statement, Lumen added that it will retain a strategic relationship with the new LatAm company and continue to serve joint customers in the region. It said the transaction serves to monetise an attractive asset at nine times the LatAm unit’s 2020 estimated adjusted EBITDA, provide additional capital to accelerate investments in key growth areas and enable greater flexibility on capital allocation, allowing for debt reduction and the continued evaluation of share repurchases.
Lumen and Stonepeak expect the sale to close in the first half of 2022. Upon the completion of the transaction, customers who seek services within the Latin America region will work directly with the new LatAm company or through the strategic Lumen partnership.
