Liberty Latin America said Wednesday that its 49%-owned subsidiary Cable & Wireless Panamá S.A. has agreed to purchase Claro Panamá, a division of América Móvil S.A.B. de C.V. in an all-cash deal that values the business at about $200 million.
Claro Panamá has about 760,000 mobile subscribers and generated about $157 million in revenue in fiscal 2020. In a press release, Liberty Latin America CEO Balan Nair said the deal highlights the company’s commitment to its Panamanian network.
“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 said in the release. “We at Liberty Latin America have established our group Operations Center in Panama and see the country as an important digital hub for the region, which we expect to 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.”
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The purchase, including fees and expenses, will be financed using cash and incremental borrowings at Cable & Wireless Panamá. The deal is expected to close in the first half of 2022.
Lion Tree served as an adviser to Cable & Wireless Panamá on the transaction.
