Liberty Latin America and Millicom International Cellular will merge their Costa Rican operations. Liberty Latin America announced on Thursday that Liberty Costa Rica will merge with Millicom International Cellular's Tigo Costa Rica via an all-stock deal focused on boosting investment in fiber networks to deliver enhanced services in the country.
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Ownership and Financial Metrics
Under the all-stock agreement, Liberty Latin America and its minority partner in Costa Rica will hold approximately 86 percent of the new entity, with Millicom holding 14 percent. The final ownership percentage will be confirmed at closing, the joint statement said.
As of December 31, 2023, the combined operations reported an adjusted OIBDA of USD 255 million, served over 440,000 broadband subscribers, and had net debt of USD 533 million. The merger aims to enhance fiber network expansion, boost competition, and improve digital services in Costa Rica.
Strategic Goals and Benefits
Liberty Latin America commented, "Costa Rica is a great country to operate in, and Liberty Costa Rica is a strong business for us. By combining Liberty and Tigo, the fixed operations will accelerate the transition to FTTH and enable us to deliver exceptional high-speed services for consumers, provide enhanced customer experiences, drive innovation, and offer growth opportunities for our people. With this transaction, Liberty Costa Rica will continue to be a leading connectivity operator in the market."
"Our combined operations will significantly benefit the telecommunications sector by enhancing fiber network investment to help accelerate Costa Rica's technological evolution in a highly competitive market," Millicom said.
"It creates a stronger, more competitive entity with the capacity to meet accelerated technological changes, network expansion, and service improvements, ensuring that long-term market conditions remain competitive while maintaining high-quality and valuable services for our customers in Costa Rica."
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Completion Timeline
The transaction is expected to be completed during the second half of 2025, subject to customary closing conditions, including regulatory authorisations.
