Millicom to acquire Panama’s Cable Onda

Cable-Onda1

Millicom announced that it is acquiring a controlling 80% stake in Panama’s Cable Onda. The transaction values 100% of the company at an enterprise value of USD 1,460 million, with a cash consideration of approximately $1,002 million, the group said in a statement. The deal is expected to close by year-end 2018.
The selling shareholders will retain a 20% equity stake in the company. Cable Onda is the country’s largest broadband, pay TV and fixed telephony provider serving more than 500,000 customers using mostly its state-of-the-art Hybrid Fibre-Cable (HFC) network, said Millicom.
“Our acquisition of Cable Onda is consistent with our strategy of accelerating the deployment of high-speed data networks in Central and South America. With the addition of Panama, we now have contiguous country operations from Guatemala to Colombia, which will significantly enhance our B2B capabilities, given the country’s increasingly important role as a business hub for the region,” said Millicom CEO, Mauricio Ramos.
Nicolás Gonzalez Revilla, CEO of Cable Onda commented: “For the past two decades, the dedicated employees of Cable Onda have built a world-class organization capable of competing, and winning, against some of the largest telecom service providers in the world. This is a true Panamanian success story that we can all be proud of, and this is also something that we have in common with Millicom, the clear leader in most of its markets.”
The transaction is subject to customary closing conditions and consent from Cable Onda’s bondholders. The operator competes in Panama with Cable & Wireless (Liberty Latin America), Claro (América Móvil) and Sky (AT&T), among others.