By Shalini Ramachandran and Drew FitzGerald 

AT&T Inc. has agreed to sell its Puerto Rican and U.S. Virgin Islands businesses to Liberty Latin America Ltd. for $1.95 billion in cash, a move that could allow the telecommunications giant to shave its debt load, according to a person familiar with the matter.

The companies plan to announce the deal as soon as Wednesday morning, this person said.

AT&T's operation in Puerto Rico provides cellular, landline and internet connections. The company was initially seeking a valuation of closer to $3 billion for the Puerto Rican assets, this person said.

Liberty is already the biggest pay-TV and broadband provider on the island. Cable tycoon John Malone, who holds a 25.5% voting stake in Liberty Latin America, and Liberty Latin America CEO Balan Nair have told investors they would like to expand in the region through disciplined M&A.

Liberty plans to finance the cash deal in large part by raising debt against the combined Puerto Rican operation, the person said.

Write to Shalini Ramachandran at and Drew FitzGerald at


(END) Dow Jones Newswires

October 09, 2019 08:42 ET (12:42 GMT)

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