Liberty Latin America expands Panama business with Claro Panamá acquisition

Liberty Latin America has announced that its subsidiary business Cable & Wireless Panamá has agreed to purchase América Móvil’s Panama operations.

The deal values the Claro Panamá unit at an enterprise value of US$200 million on a cash- and debt-free basis.

Claro Panamá ended 2020 with US$157 million of revenue, while the company ended its H1 2021 with 760,000 mobile customers. 

Cable & Wireless Panamá said that the acquisition will be financed using cash and incremental borrowings. The deal is expected to close in H1 2022 subject to customary closing conditions. 

Balan Nair, President and CEO of Liberty Latin America, said: “We are delighted to further increase our commitment to Panama through today’s announced acquisition of Claro Panamá. The integrated business will operate over a network with extensive coverage and invest to deliver innovative mobile products and services for Panamanian consumers and B2B customers, including via leading technologies such as 5G. 

“We at Liberty Latin America have established our group Operations Center in Panama and see the country as an important digital hub for the region, which we expect to drive growing demand for our full suite of mobile and fixed connectivity solutions. The valuation for the acquisition is consistent with our disciplined approach towards M&A and will be free cash flow accretive on a per share basis.”