Costa Rica: Reverse Move to Buy Telefonica

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.

Monday, May 4, 2020

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for Millicom to buy the shares of Telefónica de Costa Rica TC S.A., the parties announced that the agreement has been rescinded.

See "Telefónica Starts Selling Assets in the Region"

According to the companies, the agreement to buy Telefonica's shares in Costa Rica amounts to about $570 million.

From Millicom's press release:

Luxembourg, May 2, 2020 - Millicom International Cellular S.A. announces that today has exercised its right to terminate the Share Purchase Agreement (SPA) for the acquisition of an operating subsidiary of Telefónica in Costa Rica in accordance with the terms of the SPA.

As announced on April 29, 2020, the closing of the SPA was conditioned upon the issuance of the required regulatory approvals that were agreed to by the parties and set forth in the SPA, certain of which have not yet been issued. The SPA establishes a deadline of May 1, 2020, after which either party may terminate the agreement, and Millicom has exercised its right to do so.

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More on this topic

El Salvador: Telefonica's Sale Cancelled

September 2020

As a result of the conditions imposed by the Superintendence of Competition to carry out the operation, América Movil and Telefónica decided to cancel the agreement to purchase 99.3% of Telefonica Moviles El Salvador.

According to the technical, legal and economic analysis carried out by the Superintendence of Competition SC, it was warned that the acquisition would produce limitations to competition in the markets of mobile and fixed telephony and business connectivity services.

Purchase of Telefonica in Costa Rica Approved

September 2019

The Superintendence of Telecommunications authorized the economic concentration requested for Millicom to acquire the shares of Telefonica de Costa Rica TC S.A.

The authorization comes after Telefonica announced in February 2019 that it had reached an agreement with Millicom S.A.

Telefonica Purchase Completed in Panama

August 2019

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.

Telefonica Sells Its Assets to Millicom

February 2019

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.

After the company reported in late January 2019 that for $648 million it had agreed to sell to America Móvil all the shares of Telefonica Guatemala and 99.3% of Telefonica El Salvador, it now announced that it had completed the sale process of the entire operation in Central America.

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