Liberty Latin America gets OK to buy Telefonica’s Costa Rican operations for $505M
Liberty Latin America Ltd. and Telefónica S.A. in Costa Rica announced that the companies have received authorization from Costa Rican President Carlos Alvarado Quesada, for the sale of Telefónica’s operations in Costa Rica to Liberty Latin America’s 80% subsidiary, Cabletica.
Liberty Latin America, parent company of Liberty Puerto Rico, will reportedly pay $505 million for the operation.
The Superintendent of Telecommunications also determined there was no evidence the transaction would produce any anti-competitive effects and approved the transaction without conditions.
Telefónica did business in Costa Rica as Movistar and had been trying to exit the country since early in 2019. At the time, it agreed to sell to its wireless operation in Costa Rica and two other operations in Central America to Millicom. However, the deal fell through in 2020, according to published reports.
“Telefónica and Liberty Latin America are excited to complete the transaction and to combine Cabletica and Movistar in Costa Rica. The companies intend to close the transaction shortly,” the companies stated.