Costa Rica’s Superintendency of Telecommunications (Superintendencia de Telecomunicaciones, Sutel) has approved the takeover of Cabletica, Costa Rica’s third-largest broadband provider by subscribers, by US-based Liberty Latin America (LLA). The final stage of the transaction will see the Ministry of Science, Technology and Telecommunications (Ministerio de Ciencia, Tecnologia y Telecomunicaciones, MICITT) transfer Cabletica’s existing concessions to the new owner. According to El Financiero the deal is expected to be completed by September this year.
In February 2018 LLA agreed to purchase an 80% stake in Cabletica in an all-cash transaction worth CRC143 billion (USD245.7 million). The current owner, Teletica (officially Televisora de Costa Rica), will retain the remaining 20% stake in Cabletica, along with the company’s content assets, some of which will be provided to Cabletica on an exclusive basis.
TeleGeography notes that LLA was established in December 2017, following a ‘split-off’ from Liberty Global plc. The new company comprised Liberty Global’s assets in Latin America and the Caribbean, the bulk of which previously belonged to UK-based Cable & Wireless Communications (CWC). The new company intends to increase its operational footprint further via M&A, and the Cabletica takeover represents its first transaction of note.