After the failure of the transaction between Telefónica and Millicom, the Spanish company has reached an agreement to sell Movistar Costa Rica to Liberty Latin America (LLA). The announcement was made by both companies on July 30. The amount of the transaction will be USD 500 million.
In Costa Rica, LLA has an 80% stake in Cabletica, an operator offering fixed services: Pay TV, Internet and phone services. In addition, it is the owner of Chile’s VTR, Liberty Puerto Rico and Cable & Wireless units in Panama and several territories in the Caribbean region.
LLA has remarked that Movistar is Costa Rica’s second largest mobile service provider. In addition to mobile phone services, the company provides VOIP and Satellite TV (DTH).
The acquisition requires Costa Rican government’s authorization. According to Liberty, it is expected that the transaction will close during the first half of 2021.
Telefónica has asserted its determination to “maintain the legal action initiated last May 2020, against Millicom due to unjustified breach of the terms of the agreement reached in 2019 and will continue demanding the compensation of all damages that Millicom’s unjustified breach has caused the Telefonica Group.”