Telefónica Hispanoamérica has sold 64% of wholesale fiber optic company PangeaCo to global investment firm KKR and telecommunications company Entel Peru.
Telefónica Hispanoamérica will retain a 36% ownership stake, while KKR and Entel Peru will hold 54% and 10% respectively, as part of this agreement. This landmark deal paves the way for the establishment of Peru's first open-access fiber optic wholesaler. The newly formed company will integrate the existing fiber optic networks of PangeaCo, Telefónica del Perú, and Entel Peru, enabling all internet service providers to access and utilize the network for the very first time.
By combining these networks, KKR will establish ON*NET Fibra de Perú, an independent entity responsible for building and operating the largest fiber optic network in the country. Telefónica will receive variable payments over the next four years after the transaction's closure, which is subject to regulatory approvals, including that of the Peruvian competition agency (Indecopi).
Telefónica Hispanoamérica has enlisted the services of Latham & Watkins LLP for guidance and counsel on matters related to mergers and acquisitions (M&A) as well as financing.