Liberty Latin America CEO: ‘Panama as an important digital hub for the region’
Liberty Latin America’s subsidiary business, Cable & Wireless Panama, has agreed to purchase América Móvil’s Panama operations, expanding its footprint in the country. The deal, which values the unit $200 million, is subject to regulatory approval and is expected to close in the first half of 2022.
“We are delighted to further increase our commitment to Panama through today’s announced acquisition of Claro Panamá,” said Balan Nair, president and CEO of Liberty Latin America. “The integrated business will operate over a network with extensive coverage and invest to deliver innovative mobile products and services for Panamanian consumers and B2B customers, including via leading technologies such as 5G.”
Nair added that Liberty Latin America views Panama as an “important digital hub for the region,” and that the acquisition will “drive growing demand for our full suite of mobile and fixed connectivity solutions.”
“The valuation for the acquisition is consistent with our disciplined approach towards M&A and will be free cash flow accretive on a per share basis,” he continued.
Claro Panamá ended 2020 with $157 million of revenue and as of June 30, 2021, had 760,000 mobile customers.
Liberty Latin America, in general, is known for actively pursuing acquisitions, and just prior to this announcement, the company expanded in Costa Rica, as well, where it purchased Telefónica’s wireless operations.
“By combining our fixed business, Cabletica, with the mobile network operating under the Movistar brand,” Nair said of the Telefónica deal, “we will offer greater value to our customers. We are committed to providing even more connectivity solutions to Costa Ricans, as we aim to bring converged offerings to the market. Together we are stronger and will be able to offer differentiated products and services to our customers, provide greater opportunities for our employees, and strengthen our ties to the communities we serve.”
