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Cable & Wireless Panama to Acquire America Movil Operations in Panama

Cable & Wireless Panama to Acquire America Movil Operations in Panama Image Credit: Liberty Latin America

Liberty Latin America this week announced that its 49%-owned subsidiary Cable & Wireless Panama has agreed to acquire América Móvil operations in Panama.

The all-cash transaction values Claro Panamá at an enterprise value of $200 million on a cash- and debt-free basis. This equates to a mid-single digit acquisition multiple of Claro Panamá’s fiscal year 2020 Adjusted OIBDA, including projected annual run-rate synergies.

 

For the most recent fiscal year ended December 31, 2020, Claro Panamá generated $157 million of revenue and as of June 30, 2021, the business had 760 thousand mobile subscribers. The acquisition is intended to be financed using cash and incremental borrowings at Cable & Wireless Panamá. Completion of the transaction is subject to certain customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2022.

Balan Nair, President and CEO of Liberty Latin America
The integrated business will operate over a network with extensive coverage and invest to deliver innovative mobile products and services for Panamanian consumers and B2B customers, including via leading technologies such as 5G. We at Liberty Latin America have established our group Operations Center in Panama and see the country as an important digital hub for the region, which we expect to drive growing demand for our full suite of mobile and fixed connectivity solutions. 

Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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