Telefonica’s long-running saga to divest its Costa Rica unit finally entered the closing stages, as the country’s president approved a sale to Liberty Latin America’s local cable business later this month.
In a stock market statement, the companies confirmed the change of ownership had been cleared by Costa Rica President Carlos Alvarado Quesada having already received approval from regulator The Superintendencia de Telecomunicaciones (Sutel).
Once completed, the Movistar Costa Rica business will be combined with Liberty Latin America’s local broadcast and fixed player Cabletica.
The pair said they were “excited to complete the transaction” and intended to do so in the middle of this month.
Telefonica’s path out of Costa Rica has been far from smooth. In February 2019 it agreed to sell to Millicom alongside two other business units in Central America. However, following regulatory issues and a row between the two businesses the agreement was scrapped in 2020.
Less than three months later Telefonica announced it had reached an agreement with Liberty Latin America on a €425 million ($505 million) sale, a discount on the $570 million Millicom had been willing to pay.Subscribe to our daily newsletter Back