In a statement Millicom described the deal as a perfect complement to its existing operations in the countries, reinforcing its position in Central America following the recent acquisition of Panama’s Cable Onda for USD 1 billion. “We are acquiring the number 1 mobile operator in Panama and in Nicaragua and the number 2 mobile operator in Costa Rica. As a result, we now have both fixed and mobile in every market we operate in Latin America,” said Millicom CEO Mauricio Ramos, adding that “the transaction gives us full in-market scale and the benefits of significant synergies.”
The agreement completes the sale of all of Telefonica’s operations in Central America after reaching a deal last month to divest its Guatemala and El Salvador units to America Movil for a total of EUR 570 million. The aggregate amount agreed for the five units comes to USD 2.298 billion, with a joint implicit multiple of 7.4 times the estimated 2018 OIBDA of the companies and with an estimated debt reduction of approximately EUR 1.4 billion, said the operator in a short statement.
It said the sale formed part of its portfolio management policy to optimise return on capital and lower debt without mentioning whether it’s still exploring the total or partial sale of its Mexican unit.
