Cable & Wireless Panamá to Acquire América Móvil’s Panama Operations
September 15 2021 - 9:15AM
Business Wire
Combination to Improve Coverage and Customer Experience
Greater Investment in Networks and Innovation
Liberty Latin America Ltd. (“Liberty Latin America” or “LLA”)
(NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced that its
49%-owned subsidiary Cable & Wireless Panamá S.A. (“Cable &
Wireless Panamá” or “Más Móvil”), has agreed to acquire América
Móvil S.A.B. de C.V.’s (“AMX”) operations in Panama (“Claro
Panamá”). 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 OIBDA1, including projected
annual run-rate synergies2.
Balan Nair, President and CEO of Liberty Latin America,
commented, “We are delighted to further increase our commitment to
Panama through today’s announced acquisition of Claro Panamá. 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. The valuation for the acquisition is
consistent with our disciplined approach towards M&A and will
be free cash flow accretive on a per share basis.”
For the most recent fiscal year ended December 31, 2020, Claro
Panamá generated $157 million of revenue3 and as of June 30, 2021,
the business had 760 thousand mobile subscribers4.
The acquisition (including fees and expenses) 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.
Advisory services to Cable & Wireless Panamá on the
transaction have been provided by LionTree.
FORWARD LOOKING STATEMENT
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including, but not limited to, statements regarding the
timing and benefits of the transaction, including synergy benefits;
the expected impact of the transaction and financings for the
transaction, and other information and statements that are not
historical fact. These forward-looking statements involve certain
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by these statements.
These risks and uncertainties include, but are not limited to,
events that are outside of our control, such as natural disasters
and pandemics (including COVID-19), our ability to obtain
regulatory consents for the transaction as well as other conditions
to closing, our and Claro Panamá’s ability to continue financial
and operational performance at historic levels, continued use by
subscribers of our and Claro Panamá’s services, our ability to
achieve expected operational efficiencies, synergies and economies
of scale, as well as other factors detailed from time to time in
our filings with the Securities and Exchange Commission, including
our most recently filed Form 10-K and Form 10-Q. These
forward-looking statements speak only as of the date of this press
release. We expressly disclaim any obligation or undertaking to
disseminate any updates or revisions to any forward-looking
statement contained herein to reflect any change in our
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is
based.
ABOUT LIBERTY LATIN AMERICA
Liberty Latin America is a leading communications company
operating in over 20 countries across Latin America and the
Caribbean under the consumer brands VTR, Flow, Liberty, Más Móvil,
BTC and Cabletica. The communications and entertainment services
that we offer to our residential and business customers in the
region include digital video, broadband internet, telephony and
mobile services. Our business products and services include
enterprise-grade connectivity, data center, hosting and managed
solutions, as well as information technology solutions with
customers ranging from small and medium enterprises to
international companies and governmental agencies. In addition,
Liberty Latin America operates a subsea and terrestrial fiber optic
cable network that connects over 40 markets in the region.
Liberty Latin America has three separate classes of common
shares, which are traded on the NASDAQ Global Select Market under
the symbols "LILA" (Class A) and "LILAK" (Class C), and on the OTC
link under the symbol "LILAB" (Class B).
For more information, please visit www.lla.com.
____________________
1
Based on Adjusted OIBDA (defined
as operating income before depreciation and amortization,
share-based compensation, provisions and provision releases related
to significant litigation and impairment, restructuring and other
operating items) for the fiscal year ended December 31, 2020 in
accordance with International Financial Reporting Standards
(“IFRS”), as adjusted (i) to include certain lease costs that are
capitalized as tangible assets under IFRS 16 in accordance with
Claro Panamá’s IFRS accounting policies and that will be expensed
as an operating cost in accordance with accounting principles
generally accepted in the United States (“U.S. GAAP”), and (ii) for
certain other diligence adjustments. Adjusted OIBDA used to
determine the estimated acquisition multiple represents LLA’s
management’s best estimate based upon information obtained from
Claro Panamá.
2
Projected annual run-rate
synergies by 2024.
3
As reported by Claro Panamá under
their IFRS accounting policies.
4
Operating statistics for Claro
Panamá are based on Claro Panama’s counting policies. Operating
statistics are subject to change after the completion of the
transaction once Claro Panamá’s statistics are presented in
accordance with Liberty Latin America’s policies.
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version on businesswire.com: https://www.businesswire.com/news/home/20210915005407/en/
Investor Relations: Kunal
Patel ir@lla.com Media
Relations: Claudia Restrepo
llacommunications@lla.com
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