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for Millicom to buy the shares of Telefónica de Costa Rica TC S.A., the parties announced that the agreement has been rescinded.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