LIBERTY LATIN AMERICA AND MILLICOM AGREE TO COMBINE OPERATIONS IN COSTA RICA
August 01 2024 - 8:00AM
Business Wire
TRANSACTION TARGETS GREATER INVESTMENT IN FIBER NETWORKS TO
DELIVER ENHANCED SERVICES AND CUSTOMER EXPERIENCE
Liberty Latin America Ltd. (“Liberty Latin America” or “LLA”)
(NASDAQ: LILA and LILAK, OTC Link: LILAB) and Millicom
International Cellular S.A. (“Millicom”) (NASDAQ U.S.: TIGO, Nasdaq
Stockholm: TIGO_SDB) today announced that the parties have entered
into an agreement to combine the companies’ respective operations
in Costa Rica. Under the terms of the all-stock agreement, Liberty
Latin America and its minority partner in Costa Rica will hold an
approximate 86% interest and Millicom 14% in the joint operations,
with the final ownership percentage confirmed at closing.
As of December 31, 2023, the combined operations had Adjusted
OIBDA1 of approximately $255 million2, more than 440,000 broadband
subscribers, and net debt of $533 million3.
The transaction reinforces the parties’ commitment to Costa Rica
by creating the opportunity for a scaled platform and accelerated
investments in fiber network expansion. In a market that is
undergoing rapid technological advancements with the deployment of
fiber networks by multiple operators, this combination would
increase fiber competition and promote high-quality, good value
services and access to the digital economy for all Costa
Ricans.
Balan Nair, President and CEO of Liberty Latin America,
commented, “Costa Rica is a great country to operate in and Liberty
Costa Rica is a strong business for us. By combining Liberty and
Tigo, the fixed operations will accelerate the transition to FTTH
and will enable us to deliver exceptional high-speed services for
consumers, provide enhanced customer experiences, drive innovation,
and offer growth opportunities for our people. With this
transaction, Liberty Costa Rica will continue to be a leading
connectivity operator in the market.”
Mauricio Ramos, Chair, Millicom, said, “Our combined operations
would significantly benefit the telecommunications sector by
enhancing fiber network investment to help accelerate Costa Rica's
technological evolution in a highly competitive market. This merger
is expected to generate new efficiencies and improve commercial
offerings, providing customers with access to mobile services and
premium content. It creates a stronger, more competitive entity
with high investment capacity to meet the accelerated technological
changes, network expansion, and service improvements, ensuring that
long-term market conditions remain competitive while maintaining
high-quality and valuable services for our customers in Costa
Rica.”
The transaction is subject to customary closing conditions,
including regulatory authorizations, and we expect the transaction
to be completed during the second half of 2025.
Liberty Latin America was advised by JP Morgan, while Millicom
was advised by Aldo J. Polak and FTI Consulting.
About Liberty Latin America
Visit: www.lla.com
About Millicom
Visit: www.millicom.com
1Based on the combined Adjusted OIBDA (defined as operating
income before depreciation and amortization, share-based
compensation, provisions and provision releases related to
significant litigation and impairment, restructuring and other
operating items) for the fiscal year ended December 31, 2023 of
LLA’s Costa Rican operation in accordance with accounting
principles generally accepted in the United States (U.S. GAAP), and
Millicom’s Costa Rican operation in accordance with International
Financial Reporting Standards (“IFRS”), as adjusted to include
certain lease costs that are capitalized as tangible assets under
IFRS 16 in accordance with Millicom’s IFRS accounting policies and
that will be expensed as an operating cost in accordance with U.S.
GAAP.
2140 billion Costa Rica Colons at representative exchange rate
of 545:1 as of December 31, 2023.
3290 billion Costa Rica Colons at representative exchange rate
of 545:1 as of December 31, 2023.
FORWARD LOOKING STATEMENT
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including, but not limited to, statements regarding the
timing, benefits and expected impact of the transaction and other
information and statements that are not historical fact. These
forward-looking statements involve certain risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied by these statements. These risks and
uncertainties include, but are not limited to, events that are
outside of our control, such as natural disasters and pandemics,
our ability to obtain regulatory approvals for the transaction as
well as satisfying other conditions to closing, as well as other
factors detailed from time to time in our filings with the
Securities and Exchange Commission, including our most recently
filed Form 10-K and Form 10-Q. These forward-looking statements
speak only as of the date of this press release. We expressly
disclaim any obligation or undertaking to disseminate any updates
or revisions to any forward-looking statement contained herein to
reflect any change in our expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based.
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version on businesswire.com: https://www.businesswire.com/news/home/20240731921810/en/
Liberty Latin America
Investor Relations Kunal Patel, ir@lla.com
Media Relations Kim Larson, llacommunications@lla.com
Millicom
Investor Relations Michel Morin,
investors@millicom.com
Media Relations Sofia Corral, press@millicom.com
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