Telefonica resumes its plans to sell its Costa Rican operations

After, in early May, Millicom refused itself to acquire Telefonica’s operations in Costa Rica (where it is known as ‘Movistar’), in an agreement valued at USD 570 million and ran in February 2019, the Spanish press reported that Telefonica began an asset analysis process in Costa Rica (known as ‘Due Diligence’) to make all the data available for companies interested in the acquisition.

Regarding buyers, the Spanish website Merca2 reported that one of the possible acquisitor  is private equity investment firm Novator Partners, owned by Icelandic Thor Björgólsson, owner of Chilean mobile operator Wom. Another possible candidate to acquire Telefonica’s subsidiary in Costa Rica, always according to Merca2, is America Movil. In addition, the web version of the Spanish newspaper ‘El Economista’ adds the Chilean telecommunications company Entel, in addition to AT&T and Liberty Global, as potential buyers.

Up to now, Telefonica has sold its operations in Guatemala and El Salvador to America Movil, although, in these last case, it is awaiting the authorization for the third request sent to the Salvadoran Competition Superintendence (SC); while Millicom acquired the subsidiaries of the Spanish company in Nicaragua and Panama. In addition, after Millicom officially announced its refusal to acquire Telefonica’s subsidiary in Costa Rica, the Spanish company informed that it will sue it in the New York Courts, in the US.