Buenos Aires-based Grupo Werthein has reached an agreement to acquire AT&T’s Latin American Vrio Corp business unit. Grupo Werthein is a private holding company that has been doing business in Latin America and internationally for more than 100 years. It has extensive experience in telecommunications, finance, insurance, agribusiness and real estate.
Vrio offers pay-TV/TD-LTE services in Brazil through the Sky Brasil brand and pay-TV services in Argentina, Barbados, Chile, Colombia, Curacao, Ecuador, Peru, Trinidad and Tobago and Uruguay through the DirecTV brand. In total, the acquired company serves 10.3 million subscribers across eleven countries in Latin America and the Caribbean. (Note: Vrio’s broadband operations in Colombia are not included in the transaction, as these were sold to Telefonica in May this year. AT&T’s 41.3% stake in Sky Mexico is also excluded from the transaction.)
In contemplation of this transaction, AT&T classified Vrio as held-for-sale at 30 June 2021 and reported the asset group at fair value less cost to sell, which resulted in an impairment of USD4.6 billion including USD2.1 billion related to accumulated foreign currency translation adjustments. The companies expect the transaction to close in early 2022.
While AT&T has not disclosed the value of the deal, a source told the Wall Street Journal that the final price paid is in the region of USD500 million.