QCOSTARICA — Liberty Latin America announced last week that Liberty Costa Rica will merge with Millicom International Cellular’s Tigo Costa Rica via an all-stock deal focused on boosting investment in fiber networks in the country.
Under the initial terms of the deal, Liberty Latin America and its minority partner in Costa Rica will hold around 86% in the joint operation, while Millicom will hold the remaining 14%, although the exact final ownership percentage will be confirmed once the deal closes.
The new operation will have over 440,000 broadband subscribers.
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The deal comes as Costa Rica’s multiple operators are racing to deploy fiber networks across the country.
“By combining Liberty and Tigo, the fixed operations will accelerate the transition to FTTH and will enable us to deliver exceptional high-speed services for consumers, provide enhanced customer experiences, drive innovation, and offer growth opportunities for our people,” Liberty Latin America president and CEO Balan Nair said in a statement.
“It creates a stronger, more competitive entity with high investment capacity to meet the accelerated technological changes, network expansion, and service improvements, ensuring that long-term market conditions remain competitive while maintaining high-quality and valuable services for our customers in Costa Rica,” said Millicom chair Mauricio Ramos.
Liberty Latin America entered the Costa Rican market in July 2020 via a deal to buy out Telefonica Costa Rica (Movistar), which, ironically, Millicom attempted to buy in 2019 but ultimately abandoned the deal.
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