KKR (NYSE:KKR) announces an agreement with Telefonica Colombia, a subsidiary of the leading Spanish telecom group Telefonica (NYSE:TEF), to establish Colombia's first independent nationwide open access wholesale digital infrastructure company.
The newly formed company to offer open access wholesale connectivity with modern fiber optic technology for all internet service providers in Colombia, including Telefónica.
As part of the pact, KKR will acquire a majority stake in Telefonica's existing fiber optic network, the largest in Colombia, and make the network open access through a newly established independent entity, which KKR will control as the majority shareholder. Telefonica will have 40% stake in the new company.
The company will be run independently by a local team in Colombia but brings together the expertise of both KKR and Telefonica to build and operate Colombia's premier digital infrastructure network.
Upon closing of the transaction, the new company plans to expand existing fiber optic coverage from ~1.2M homes today to, at minimum, 4.3M homes by the end of 2024.
KKR’s large direct investment in Colombia with a transaction value of ~$500M affirms its long-term commitment to the region and aims to to accelerate ultra-fast digital connectivity to improve quality and coverage for Colombians nationwide, more than quadrupling Telefónica’s existing fiber optic network.