Chilean telecommunications giant Entel has announced that it will sell the assets of its optical fiber business providing home services to local company ON*NET Fibra, in a transaction valued at US$358 million.
The sale, led by BNP Paribas, Santander and financial adviser Scotiabank, is subject to approval by Chile’s economic regulator, which is expected in the first half of 2023.
Entel currently has operations in Chile and Peru, with more than 20 million mobile phone subscribers. As part of the agreement, Entel signed an agreement with ONNET Fibra that will allow Entel to continue to provide Internet services to residents on the ONNET network, Entel said in a statement.
The statement added: “By selling our network, rather than leaving the fixed market, we are rapidly increasing our coverage to deliver our internet service to households at an efficient cost without the investment required for fibre deployment of such coverage. funds.”
After this transaction, ON*NET Fibra is expected to cover more than 4.3 million households in 2024.
The Entel Group was established in 1995 with the core business of designing and manufacturing critical radio communication equipment. Entel has two functional divisions, R&D and Manufacturing, and has a broad and diverse global customer base in various vertical markets including government and defense, oil and gas, and maritime.
About ON*NET Fibra
ONNET Fibra deploys and operates Chile’s first outsourced fiber optic infrastructure network. ONNET fibera was established in July 2021 after the internationally renowned investment company KKR acquired a 60% stake in Telefónica’s fiber optic network in Chile.