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Liberty Latin America to Acquire Telefonica´s Costa Rican Operations in Deal Valued at USD 500m
Monday 03 August 2020

Colorado, US-based communications company Liberty Latin America Ltd (NASDAQ: LILA) (NASDAQ: LILAK), (OTC Link: LILAB) has announced it has agreed to acquire the wireless operations of Costa Rican mobile service provider Telefónica S.A., the company said.

The all-cash transaction values Telefónica Costa Rica at an enterprise value of USD500 m on a cash- and debt-free basis.

Liberty Latin America intends for Telefónica Costa Rica to become part of the VTR credit pool, which will also include Cabletica, and to finance the acquisition (including fees and expenses) with incremental local borrowings and borrowings at VTR Finance N.V., targeting approximately 4x debt on the acquired asset's Adjusted OIBDA.

The remaining funding is anticipated to come from LLA liquidity including future free cash flow generation, as well as other forms of debt and/or equity capital.

Telefónica Costa Rica, combined with Cabletica, creates an integrated communications player providing customers in Costa Rica with high-quality value propositions.

Advisory and financing services to Liberty Latin America on the transaction have been provided by JP Morgan, LionTree and Scotiabank.

Liberty Latin America is a communications company operating in over 20 countries across Latin America and the Caribbean under the consumer brands VTR, Flow, Liberty, Más Móvil, BTC, UTS and Cabletica.

Telefónica Costa Rica is Costa Rica's second largest mobile service provider. As of June 30, 2020, the business had 2.3 m subscribers, and its mobile network currently has approximately 90% LTE population coverage.
Date Published: 03/08/2020