Movistar bows out to Millicom

Movistar, has sold its operations in Panama, Costa Rica and Nicaragua to Millicom Internatioial Cellular for $1. 65 billion.

Millicom, a cable and mobile operator in Latin America and Africa with its Tigo brand recently acquired 80% pf Cable Onda’s shares for $1.46 billion.

The purchase of the mobile telephony assets of Spain’s Telefónica(Movistar) in the three countries was announced on Wednesday, February 20.

The transaction significantly expands Millicom’s operations in each of the three Central American countries and will diversify and balance its geographic footprint and sources of cash flow said a company release.

Telefonica said in January that it was negotiating the sale of assets in Panama, as well as other

Central American countries such as Costa Rica, El Salvador, Guatemala, and Nicaragua. A sale could allow the Spanish group to concentrate on its larger operations and reduce its debt. The

Spanish company arrived in Panama in 2005 when it bought the American Bellsouth.

Mauricio Ramos, CEO of Millicom, said the investment will strengthen the company’s position in Central America after it acquired Cable Onda in Panama last year.

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