Telefónica Hispanoamérica, KKR, and Entel announced that Telefónica subsidiary Telefónica Hispanoamérica has sold 64% of wholesale fiber optic company PangeaCo to global investment firm KKR and telecommunications company Entel Peru. Telefónica Hispanoamérica will maintain 36% of the shares, with KKR and Entel Peru owning 54% and 10% respectively.
This agreement enables the creation of the country’s first open access fiber optic wholesaler. The new company will combine the existing fiber optic networks of PangeaCo, Telefónica del Perú, and Entel Peru, allowing all internet providers to use the network for the first time. Through the combination of these networks, KKR will establish ON*NET Fibra de Perú to independently build and operate the country’s largest fiber optic network. Telefónica will receive certain variable payments in the next four years following the closing of the transaction, which is subject to regulatory approvals, including that of the Peruvian competition agency (Indecopi).
Latham has advised Telefónica on numerous telecommunications mergers and acquisitions and financing transactions in Latin America, including the creation of Chile’s and Colombia’s first open access fiber optic wholesalers.
Latham & Watkins LLP is advising Telefónica Hispanoamérica on M&A and financing matters with a deal team led by partners Tony Del Pino, Ignacio Pallarés, and Guido Liniado, with associate Francisco Lanusse – all members of the firm’s Latin America Practice.
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