Millicom has announced an agreement to buy a controlling 80 percent stake in Panamanian cable provider Cable Onda for a cash consideration of around USD 1.002 billion. The transaction values 100 percent of Cable Onda at an enterprise value of USD 1.460 billion and, subject to customary closing conditions and consent from Cable Onda's bondholders, is expected to close by the end of 2018.
Cable Onda is currently the leading operator in Panama's broadband internet, pay-TV, fixed telephony and B2B telecommunications markets, serving more than 500,000 customers using mostly the company’s Hybrid Fibre-Cable (HFC) network. For the half-year ending 30 June, Cable Onda generated revenue of USD 195 million and EBITDA of USD 83 million.
Millicom added that it intends to fund the investment with existing cash resources and new debt, after securing funding commitments from a group of banks to help finance the acquisition. In a statement, Millicom CEO Mauricio Ramos said the acquisition of Cable Onda is consistent with the group’s strategy of accelerating the deployment of high-speed data networks in Central and South America. “With the addition of Panama, we now have contiguous country operations from Guatemala to Colombia, which will significantly enhance our B2B capabilities,” he said.
