America Movil plans to increase its stake in ClaroVTR, its Chile-based joint business with Liberty Latin America, in a deal that will give it a controlling interest of 91 per cent.

Should the deal be cleared by regulators, America Movil stated it will integrate the JV into its existing operations in the country.

America Movil explained the JV runs on funding based on convertible notes to run the business and under the terms of the agreement, Liberty Latin America had the right “to catch up” to its respective portion of financial commitments by the middle of this year to retain a 50:50 ownership.

However, it decided not to “exercise such right”, meaning America Movil could convert its notes in ClaroVTR into equity resulting “in a controlling interest of approximately 91 per cent”, said the operator.

Liberty Latin America will own the remaining 9 per cent, subject to final adjustments. Completion of the transaction is expected in Q3 2024.

Balan Noir, CEO at Liberty Latin America, said “America Movil is a great partner and ClaroVTR has a strong management team”.

“We have been proud investors in Chile for decades, and while today’s market dynamics are challenging, the long-term outlook is bright.”

The two companies formed ClaroVTR in 2021 by merging their respective Chilean operations. At the time, the pair explained the joint entity would allow for significant investment in fibre and 5G expansion in the country.