Telefonica sells its Costa Rican operations to Liberty Latin America

The Spanish company Telefonica announced on Thursday an agreement to sell its operations in Costa Rica with Liberty Latin America, valued at USD 500 million. The agreement took place after the frustrated negotiation with Millicom, which ended in a lawsuit made Telefónica against the company that operates under the ‘Tigo’ brand in Latin America ‘for unjustified breach of the terms of the agreement ran in 2019’.

Liberty Latin America owns 80% of Cabletica in Costa Rica, operator that offers pay TV, internet and mobile phone services. In addition, the company owns VTR in Chile, Liberty Puerto Rico and Cable & Wireless in Panama and the Caribbean. The acquisition is awaiting regulatory approvals although, from Liberty Latin America, the transaction is expected to be completed by mid-2021.

From Telefónica, apart from having announced that it will sue  Millicom, they reported to  ‘demand a compensation for all the damages that Millicom decision has caused to the company’.