AT&T confirmed it is mulling a public share offering for a minority stake in its DirecTV Latin America business.
In a statement the US-based operator said it is considering an initial public offering (IPO) in the first half of the year, but added “no assurance can be given that an IPO will be completed”.
The announcement confirms a Bloomberg report from October 2017 and comes as the operator looks to reduce debt as it nears the close of its Time Warner acquisition. The transaction is expected to increase AT&T’s total debt to at least $180 billion.
AT&T was initially rumoured to be investigating a potential sale of its LatAm pay-TV assets in September 2017. MoffettNathanson analyst Craig Moffett told CNBC the shift to look at an IPO could mean the operator was unable to find a buyer.
The operator said DirecTV Latin America revenue rose 10.3 per cent year-on-year to $1.4 billion in Q4 2017 and generated operating income of $135 million. The business garnered 139,000 net additions during the quarter, taking its total to 13.6 million subscribers at the year-end.