Argentina’s Supercanal receives funding to expand fiber network


Pay TV and Internet operator Supercanal-Arlink (Grupo América) received AR$ 800 million (USD 40 million) in funding from a U.S. investment firm to accelerate the digitization and expansion of fiber optics. IProfesional news site reported that the company would be sold soon.
With this investment, Supercanal said that it will expand its “digital television, telephone and internet services, in an increasingly demanding market for high definition video content and faster internet speeds”.
According to iProfesional, citing three different sources, the Cóndor fund, which belongs to telecommunications entrepreneur Carlos Joost Newbery, would have practically closed the purchase of the company. For its part, news site La Política Online (LPO) reported that Carval investment fund, owned by the Cargill Group, granted the loan with equity guarantee and purchase option, although spokespersons of the company denied LPO that there was an equity option.
For some time, rumors have been circulating that Carlos Slim’s América Móvil is interested in acquiring Supercanal, but according to LPO, the operator’s network was so old that the parties never reached an agreement regarding the price.
Supercanal is headquartered in the province of Mendoza. The company currently has a copper network covering 14 provinces, including Catamarca, Tucumán, Santa Fe, Córdoba and Tierra del Fuego.