BOGOTA, Colombia-Celumovil BellSouth acquired 100 percent of the shares of Cocelco, a wireless provider in Colombia, through a purchase on the Bogota stock exchange. BellSouth said the transaction creates the first nationwide mobile cellular operator in Colombia.
Completion of BellSouth’s acquisition of an additional 16 percent of Celumovil raises its ownership to 66 percent. Celumovil provides wireless service in the eastern and Atlantic coast regions, and Cocelco operates in the western region.
The news follows BellSouth’s announcement in June of its first increased stake in Celumovil. As part of that deal, Celumovil purchased Colombian wireless carrier Cocelco for $370 million.
BellSouth acquired the 16.55 percent of Celumovil shares from AT&T Wireless Group and Chase Manhattan, giving the U.S. company a 50.35-percent stake in Celumovil. The value of the transaction was not disclosed. BellSouth acquired 33.8 percent of the Colombian carrier from Valores Bavaria, a major Colombia industrial group, for $295 million in May. The remaining 34 percent of Celumovil is held by companies affiliated with Valores Bavaria.
Cocelco had net revenues of $84.8 million in 1999 and has 200,000 subscribers. The two Colombian carriers cover a combined 41 million population. The country has a 5-percent wireless penetration, offering significant growth opportunities. “We believe that BellSouth’s 100-year tradition in the telecommunications business, combined with the personnel already in place at Celumovil and Cocelco, will provide Colombians with the very best in communications service,” said Larry Smith, president of BellSouth operations in Colombia.
