Telefonica reactivates sale of Costa Rican unit

2 Jul 2020

Spanish telecoms giant Telefonica has restarted the process to sell its Costa Rican business, after previous suitor Millicom International Cellular (MIC) terminated its own Share Purchase Agreement (SPA) on 1 May 2020 due to a lack of progress. According to Spanish business website El Economista, there are ‘solid signs of interest on the table’ and an unnamed company has already commenced the due diligence process. America Movil, Liberty Latin America (LLA), AT&T, Novator Partners and Entel of Chile have all been named as potential bidders by the publication.

According to TeleGeography’s GlobalComms Database, the USD570 million takeover of Telefonica Costa Rica (Movistar) – part of a larger USD1.65 billion deal, which also included assets in Panama and Nicaragua – was agreed back in February 2019. The takeover received regulatory approval from Costa Rica’s Superintendency of Telecommunications (Superintendencia de Telecomunicaciones, Sutel) in September 2019, only to fall apart when the other regulatory approvals failed to materialise.

Costa Rica, Telefonica, Telefonica Costa Rica (Movistar)