The deal also includes a share of Telefónica del Perú and Entel Perú fibre optic networks, all to build Perú’s first nationwide open access wholesale fibre optics company.
The deal will combine the fibre optic networks of PangeaCo, Telefónica del Perú, and Entel Perú into an independent company controlled by KKR. This new network will be open access, available to all internet service providers.
KKR plans to make approximately US$200 million of additional investment to more than double the footprint of network from 2+ million homes to reach roughly 5.2 million homes by the end of 2026.
Through the combination of these networks, KKR will establish, ON*NET Fibra de Perú, the new name for the platform. Specifically, KKR will own a 54% interest in ON*NET Fibra de Perú with Telefónica Hispanoamérica owning 36%, and Entel Perú owning 10%.
In addition, Telefónica del Perú and Entel Perú will be anchor tenants on the expanded open access network.
The news builds on KKR’s success in expanding nationwide connectivity and increasing competition in Chile and Colombia.
ON*NET Fibra de Chile has expanded access from 2.4 million homes passed to 3.7 million homes passed since KKR signed the acquisition in February 2021 and ON*NET Fibra de Colombia has increased homes passed from 1.2 million to 2.4 million since signing in July 2021.
KKR is making the investment through its KKR Global Infrastructure Investors III fund and plans to provide operational support to ON*NET Fibra de Perú through NEXO LatAm, a digital infrastructure business supporting KKR’s Infrastructure strategy across Latin America.
The deal is subject to regulatory approvals, including the approval from the Peruvian antitrust agency (INDECOPI).
