Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean under the consumer brands BTC, Flow, Liberty and Más Móvil. It also operates as ClaroVTR through its joint venture in Chile.
The acquisition will see Liberty Latin America add 120,000 prepaid mobile subscribers to its Puerto Rican subscriber base, in a development it said would bolster its prepaid business and drive further growth.
The operator also said that the acquisition enhances Liberty Latin America’s spectrum position in Puerto Rico and USVI. This will enable greater capacity, coverage, and speeds for its customers, Liberty Latin America said.
“This transaction reinforces our commitment to Puerto Rico and USVI and showcases our intention to optimise service for our mobile customers,” said Vivek Khemka, senior vice president, Liberty Latin America.
“Upon completion of the spectrum acquisition, we will have valuable low, mid, and high band spectrum that will allow us to add more capacity, increase speeds, and further strengthen our leading 5G mobile network,” Khemka continued.
The transaction is subject to certain customary closing conditions, including regulatory approvals, and is expected to close next year.
The price tag of $256 million will be paid in four annual instalments, commencing on the closing date.
Liberty Latin America said it expects to fund the transaction through local liquidity sources, including cash on hand, cash generated from operations, cash generated from asset sales, and/or revolving credit facilities.
DISH meanwhile seem keen to return their attention to a struggling North American business.
“This transaction will enhance competition within the wireless market in Puerto Rico and the USVI, while providing DISH with additional capital to focus on our wireless business in the United States.”
Dish’s latest US results saw the company’s profits dip 50% YoY as they shed 188,000 subscribers in the quarter.
