Millicom completes Movistar Panama takeover

30 Aug 2019

Millicom International Cellular (MIC) has closed its acquisition of Telefonica Moviles Panama (Movistar), the country’s leading mobile operator. The acquisition was made via the group’s Panamanian fixed line subsidiary, Cable Onda. The cellco brings approximately 1.6 million new mobile customers to Millicom with a 4G network accessible by around 80% of the Panamanian population.

Millicom’s official press statement regarding the deal reads: ‘The transaction accelerates the execution of Millicom’s fixed-mobile convergence strategy and helps consolidate the company’s leadership position in Central America. With this additional investment in Panama, a dollarised and rapidly growing investment-grade economy, Millicom further diversifies and balances its geographic footprint in its mission to build digital highways that connect more people and develop communities throughout the region.’

TeleGeography notes that the deal formed part of a larger USD1.65 billion transaction also covering Telefonica’s cellular units in Nicaragua and Costa Rica; the Panama unit was valued at EUR573.0 million (USD650.1 million). The EUR379.0 million Nicaraguan component of the deal closed in May, but the EUR503.0 million Costa Rican takeover is still pending.