Latham & Watkins Advises Telefónica on the Sale of a Majority Stake in its Fiber Optic Network in Chile to KKR

Latham & Watkins has advised Telefónica S.A., a leading global telecommunications company, on its agreement with global investment firm KKR to establish Chile’s first open access wholesale fiber optics company with the mission to bring greater broadband access across Chile.

Under the agreement, KKR will acquire a majority stake in Telefónica Chile’s existing fiber optic network, the largest fiber optic network in Chile, and make that network open access through a newly established independent Chilean company with assets managed locally. Telefónica will hold a 40% stake in the business. The newly formed enterprise will serve as Chile’s first wholesale digital infrastructure network open to all current and future telecom operators in Chile, creating a competitive marketplace benefitting consumers and businesses across the country.

The transaction is valued at approximately US$1 billion and is expected to close in the first half of 2021, subject to regulatory approvals.

The cross-border Latham team was led by Madrid corporate partner Ignacio Pallarés and New York corporate partner Tony Del Pino, with New York finance partner Guido Liniado and associates Alan Rozen, Carlos Ibarguengoitia, Carmen Esteban, María del Pilar Villanueva, and Noemí Abastá-Vilaplana.