AT&T exploring IPO of minor stake in DirecTV Latin America

8 Feb 2018

AT&T Inc. has announced that it is exploring an initial public offering (IPO) of a minority interest in its Latin America satellite business, DirecTV Latin America, in the first half of 2018. As such, the company has confidentially filed a registration statement with US regulators. The telco notes that no assurance can be given that an IPO will be completed.

In May 2014 AT&T entered into a definitive agreement to acquire US and Latin American satellite TV provider DirecTV in a stock-and-cash transaction with a total equity value of USD48.5 billion, and a total transaction value of USD67.1 billion, including DirecTV’s net debt. The deal was approved by the Federal Communications Commission (FCC) in July 2015, and approved shortly thereafter.

DirecTV Latin America – a wholly-owned part of DirecTV Group – comprises operations in Argentina, Colombia, Ecuador, Peru, Uruguay, Venezuela, Puerto Rico and the Caribbean (including Trinidad & Tobago, Barbados, Aruba, Curacao and 20 other markets via authorised agents/dealers).

Sky Brasil Servicos (Sky Brazil) is 93.0%-owned, while the group holds a 41.3% equity method investment in Innova (Sky Mexico). Sky Dominicana (Dominican Republic) and Sky operations in Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama) all fall under the control of Sky Mexico.

Argentina, Brazil, Colombia, Mexico, AT&T, DirecTV Argentina, DirecTV Colombia, DirecTV Group, Sky Brasil Servicos (Sky Brazil), Sky Mexico