Movistar Chile sells its fiber optic subsidiary to a United States Fund

Movistar Chile announced the sale of 60% of its fiber optic subsidiary –InfraCo – to the North American fund KKR, which in turn will become a strategic partner for the company, as they also signed an alliance to accelerate technology deployment.

With the process, InfraCo was left with a value of $ 1,000 million. “The deal meets the goals of a new operating model that focuses on profitable growth and value maximization and on developing new models that allow the group to adjust the group’s exposure to the region,” said Laura Abassolo, General Manager Finance, Control and Corporate Development at Telefónica SA and President of Latin America.

The first leader of KKR’s infrastructure investment team, Valdemar Zelizak, specified that “this company will bring competition where it does not exist today, benefiting Chilean families and companies and playing a role in the recovery of the economy and the growth of digital technology. Economy.”

The origin of this deal is due to Telefónica Spain’s decision to focus on its core businesses – Spain, Germany, the United Kingdom and Brazil – in search of alternatives to the rest of the units, to strengthen them.

This is how conversations with KKR were born, who will continue to manage the home passes for Movistar in Chile, that is, the infrastructure connecting users to the last mile of optical fiber, while the main lines will continue to be within reach of Chileans.

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