Telefonica has reached a deal to sell a majority 60 percent stake in its Chilean fibre-optic network to global investment firm KKR for around USD 1 billion, confirming earlier reports. The partners will then proceed to create Chile’s first open access wholesale fibre-optic company open to all current and future telecom operators with the mission to bring greater broadband access across the country.
Upon approval, the new business plans to expand fibre to the home (FTTH) coverage in Chile from 2 million households today to a minimum of 3.5 million households by 2023, and to provide wholesale services to more than 40,000 businesses. The newly-formed network will provide access to under-served areas with more than two-thirds of households covered by the network being outside of high-income urban areas, said the longtime partners.
The new company will be controlled by KKR and will build on the firm’s global experience in digital infrastructure and in operating and deploying fibre networks, including related investments in FiberCop in Italy, Hyperoptic in the UK, Deutsche Glasfaser in Germany, Telxius in Europe and Latin America, Hivory in France, Global Technical Realty in Europe, Bharti Infratel in India and Pinnacle Towers in the Philippines.
The transaction is expected to close in the first half of 2021, subject to regulatory approvals.
