MIC takeover of Movistar Panama edges closer after ASEP approval

23 Jul 2019

When announcing its second quarter financial results last week, Millicom International Cellular (MIC) confirmed that it has received regulatory approval for the takeover of Telefonica Moviles Panama (Movistar) from the country’s National Public Services Authority (Autoridad Nacional de los Servicios Publicos, ASEP).

The authorisation appeared in Official Gazette No. 28806-A at the end of June and confirmed that the most recent licence held by Movistar (‘01-OAL-2014’) – dated 27 March 2014 – has now been transferred to Millicom. The latter must now inform the Panamanian cabinet of its preparedness to adhere to the legal, technical and financial obligations of said concession within four months of the government’s resolution (i.e. by late-October 2019).

TeleGeography notes that the deal formed part of a larger USD1.65 billion transaction also covering cellular units in Nicaragua and Costa Rica. The Panama unit was valued at EUR573.0 million (USD650.1 million) and is said to be the country’s wireless market leader, with around 1.6 million customers and a 4G network covering 74% of the population.