Colombian mobile newcomer WOM has announced plans to stage a ‘merger by absorption’ of its sister company, Avantel. The proposed tie-up was unanimously approved by WOM’s General Assembly of Shareholders on 18 May and announced on 20 May.
In an interview with La Republica, WOM CEO Chris Bannister has clarified that – as the ‘largest and most financially sound company’ – WOM will assume all responsibilities to Avantel’s creditors and prioritise the payment of its legacy debts. He expects the merger process to conclude within four months.
TeleGeography notes that Partners Telecom Colombia (WOM) was created by Icelandic-owned, UK-based private equity firm Novator Partners in 2019 to bid in the country’s multiband spectrum auction. In July 2020 it was confirmed that Novator had acquired an unspecified majority stake in debt-wracked local telco Avantel and launched a restructuring of the business. The value of the deal was not disclosed.