Telefónica Hispanoamérica completed the sale of 64% of PangeaCo to the US venture capital fund KKR and to Entel Perú, an operation with which the Spanish group reduces its net debt by around 200 million euros -which in March exceeded 26,000 million euros-, according to what was reported to the National Stock Market Commission. Securities (CNMV) of that country.
PangeaCo is the subsidiary through which Telefónica manages its fiber optic business in Peru. In this way, KKR will own 54% of the business, while Entel will keep 10%. José María Álvarez-Pallete’s group will keep the other 36%. In 2021, Telefónica had already transferred 60% of On-Net Fibra in Chile and Colombia to KKR.
Telefónica del Perú and Entel will leave some of their fiber optic infrastructure assets for the home in the hands of PangeaCo, while they finalize a series of contracts, including those related to the provision of wholesale connectivity services.
Telefónica expects a reduction of 200 million euros in its financial debt at the closing of the transaction. In the same way, you will receive “certain variable payments” in the following four years.
The objective of KKR is to design a new wholesale company that offers fiber optic service in our country, which is called On Net Fiber of Peru. This network will combine the fiber optic networks of PangeaCo, Telefónica del Perú and Entel Perú.
In a press release, the fund has indicated that On Net Fiber of Peru “For the first time, it will authorize the use of the network to all Internet providers.” For this purpose, it will invest an additional US$200 million with the objective of “more than doubling the ultra-fast fiber network.”
If the promise is fulfilled, it will go from coverage of around two million homes to 5.2 million, “with the possibility of contracting the fiber optic service in 86 provinces (of Peru) by the end of 2026.”
“Under the terms of the agreement, KKR will acquire a majority stake in PangeaCo, which will subsequently acquire the existing fiber optic networks of Telefónica del Perú and Entel Perú. Through the combination of these networks, KKR will establish On Net Fibra de Peru (new name of the company) to independently build and operate the largest fiber optic network in the country,” he said.
The operation is subject to regulatory approvals, including that of the Peruvian antitrust agency (Indecopi).
Source: Larepublica
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