Millicom takes control of Telefónica business in Panama in €573m deal

02 September 2019 | Alan Burkitt-Gray

Swedish-owned Millicom has completed the purchase of Telefónica Móviles Panamá in a €573 million deal.

The Panama operation, now part of Millicom’s cable operator in the country, Cable Onda, brings 1.6 million new mobile customers to the group, with a 4G network accessible to 80% of the population.

The deal is part of a three-part acquisition, valued at €1.45 billion announced in February and it is the second to be completed.

Millicom closed the €379 million acquisition of Telefoníca Celular de Nicaragua in May. The third acquisition, of Telefónica Costa Rica for €503 million, is still progressing.

In January Telefónica agreed the sale of its Telefónica Móviles Guatemala and Telefónica Móviles El Salvador operations to Mexican group América Móvil for €570 million. With these deals, worth a total of €2 billion, “Telefónica completes the sale of all its operations in central America”, said the Spanish company. 

Millicom, Swedish owned and based in Luxembourg, said the Panama transaction accelerates its “fixed-mobile convergence strategy and helps consolidate the company’s leadership position in central America”.

It said Panama is a “rapidly growing investment-grade economy” that means “Millicom further diversifies and balances its geographic footprint in its mission to build digital highways that connect more people and develop communities throughout the region”.