Liberty Latin America (LLA) has announced that it has agreed to purchase an 80% stake in Costa Rica’s third-largest broadband provider, cable operator Cabletica. The transaction will be all cash and values the firm at approximately CRC143 billion (USD245.7 million), according to a press release from LLA. The current owners, Teletica (officially Televisora de Costa Rica), will retain the remaining 20% stake in Cabletica, along with the company’s content assets, some of which will be provided to Cabletica on an exclusive basis. Cabletica provides analogue and digital television, broadband internet and fixed-line telephony services to residential customers. As of 30 September 2017, its HFC network passed approximately 562,000 homes covering nearly 40% of the homes in Costa Rica. Cabletica served a total of 207,000 customers at the end of September, who subscribed to 327,000 subscription services. The operator also provides wireless services as an MVNO, via an agreement with state-owned Kolbi.
President and CEO of LLA, Balan Nair, commented on the agreement: ‘The acquisition of a leading cable operator in Costa Rica is an exciting move as it adds further scale to our growing platform and diversifies us into one of the region’s most attractive markets … This transaction is a prime example of our consolidation ambitions, leveraging our unique subsea and terrestrial footprint, in a region that remains highly fragmented and continues to be both underpenetrated and underserved by high-speed data services.’
LLA plans to finance the acquisition through a combination of existing liquidity and incremental debt borrowings. The transaction is subject to regulatory approvals and customary closing conditions and is expected to be completed in H2 2018.