Backtracking on Telefonica Purchase: What's Next?

After Millicom announced that it exercised its right to cancel the Share Purchase Agreement for the acquisition of Telefonica's operating subsidiary in Costa Rica, the Spanish firm will focus on strengthening its operations in the Central American country.

Tuesday, June 2, 2020

Eight months after the Telecommunications Superintendence authorized the economic concentration requested for Millicom to buy the shares of Telefónica de Costa Rica TC S.A., the parties announced on May 2nd that they had decided to rescind the agreement.

Telefonica executives said that they would bet on the continuity of the services and invest in its telecommunications network, focusing on its customers and collaborators.

See "Electronics and IT: Market Trends"

Johanna Escobar, director of Telefónica Costa Rica, told Elfinancierocr.com that "... at the corporate level they maintain the portfolio of services (including cyber security, IoT, Big Data) and have incorporated others to strengthen the offer at the corporate level of SMEs."

Escobar added that "... the opportunities in this market are derived from the speed of technology adoption in all types of companies, including SMEs where 'great price sensitivity' is detected."

The company does not rule out investing in the future in fiber optic connectivity services for homes, the executive said.

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Costa Rica: Reverse Move to Buy Telefonica

May 2020

Millicom announced that it exercised its right to terminate the Share Purchase Agreement for the acquisition of Telefonica's operating subsidiary in the Central American country.

Only eight months after the Telecommunications Superintendence authorized the economic concentration requested for Millicom to buy the shares of Telefónica de Costa Rica TC S.A., the parties announced that the agreement has been rescinded.

Telefonica Purchase Completed in Panama

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Millicom announced that it completed the acquisition of Telefonica Moviles Panama, S.A. through its subsidiary Cable Onda.

In February of this year, Telefónica announced that it had reached an agreement with Millicom S.A. for the sale of all of the company's shares in Panama.

Telecommunications: Investments in Nicaragua

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After Telefónica was acquired by Millicom, the company plans to invest $1.25 billion in the next five years to expand the network and its services to companies in the country.

On May 16, Millicom reported that it closed the acquisition of Telefonía Celular de Nicaragua, S.A., the number one mobile operator in the country, in addition to TIGO Nicaragua's existing cable operation.

Telefonica Sells Its Assets to Millicom

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The company reported that it signed an agreement with Millicom S.A. for the sale of all shares of Telefonica Costa Rica, Nicaragua and Panama, closing the transaction at $1.65 billion.

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