KKR and Telefónica Colombia have finalized a new partnership, which will facilitate the inauguration of Colombia’s first independent open-access wholesale digital infrastructure company.
In a deal worth an estimated US$500 million, KKR will now assume control of a 60% equity stake in Telefónica’s previously established fiber-optic network. Telefónic will keep control of the remaining 40%.
As the controlling party in that operation, KKR will then transform it into an open access system. This new move will be facilitated via a new and separate entity.
“We are thrilled to, once again, be working with Telefónica to provide greater broadband access to those who need it, and to be doing so in Colombia, a country we believe is primed for significant growth ahead and which serves as an attractive destination for investors,” said Waldemar Szlezak, a senior employee at KKR.
“This new venture in Colombia, along with ON*NET Fibra de Chile, demonstrates the potential to invest in innovative financing and growth strategies to promote digital infrastructure in Latin America.”
Upon completing the deal and all other related processes, the newly established firm will be under the (independent) management of a Colombia-based team. The shared experience and expertise of both firms will be put to work to ensure that its fiber-optic coverage can be increased from 1.2 million homes to a minimum of 4.3 million homes by the end of 2024.
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