AT&T completed a sale of fixed and mobile assets in Puerto Rico and the US Virgin Islands to Liberty Latin America, ten days after the US Department of Justice (DoJ) set special terms for the transaction in exchange for approval.
The $1.95 billion deal includes the transfer of: AT&T’s employees; network assets and spectrum; property and leases; and 1.1 million mobile subscribers and contracts.
Though the DoJ required the companies to divest certain fibre assets and customer accounts, AT&T said it retained control of DirecTV and “certain global business customer relationships” in the region. It also remains responsible for operating the dedicated FirstNet emergency services network.
AT&T said it will use proceeds from the deal to redeem all preferred interests in its subsidiary PR Holdings. It intends to pursue further sales of non-core assets.
During its Q3 earnings call, CFO John Stephens noted AT&T has $500 billion in assets on its balance sheet, providing “ample opportunity to continue to strengthen our cash position” by offloading peripheral holdings.
The deal is the second the operator completed in as many months, following the sale of its stake in entertainment company Central European Media Enterprises (CME) to investment company PPF Group for $1.1 billion in October.Subscribe to our daily newsletter Back