Lumen sells Latin American business to Stonepeak

Lumen Technologies has announced that its Latin American business has been acquired by Stonepeak Infrastructure Partners, a deal valued at US$2.7bn.

As part of this deal, Lumen business in Latin American will be divested, operating as a standalone, portfolio company under the investment firm, with headquarters in the US.

At the current pace, the deal will be finalized within the first half of 2022. Also joining Stonepeak as a participating investor in the deal is AustralianSuper, Australia’s largest pension fund.

Stonepeak will also retain Lumen’s existing Latin American leadership team and structure at the yet-to-be-named firm, with Hector Alonso, Lumen’s regional president staying at the reins.

“This transaction unlocks value for our shareholders while allowing us to maintain our global presence through our strategic relationship with the New LATAM Company. This transaction allows Lumen to focus investments in key areas of the business to drive future growth while providing flexibility for our capital allocation strategy,” said Lumen President and CEO Jeff Storey.