Under the terms of the all-stock agreement, Liberty Latin America and its minority partner in Costa Rica will hold around 86% interest and Millicom 14% in the joint operations, with the final ownership percentage confirmed at closing.
Balan Nair, president and CEO of Liberty Latin America said: “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.”
As of December 31, 2023, the combined operations had adjusted OIBDA of approximately US$255 million, more than 440,000 broadband subscribers and net debt of $533 million.
The deal reinforces the parties’ commitment to the country by creating the opportunity for a scaled platform and accelerated investments in fibre network expansion, the companies said in a release.
The combination will increase fibre competition and promote high-quality, good-value services and access to the digital economy for all Costa Ricans, the release added.
“Our combined operations would significantly benefit the telecommunications sector by enhancing fibre network investment to help accelerate Costa Rica's technological evolution in a highly competitive market,” said Mauricio Ramos, Chair at Millicom.
“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 expected to be completed in the second half of 2025 and is subject to customary closing conditions including regulatory approval.
