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Latham & Watkins Advises Telefónica in Agreement With KKR to Establish Colombia’s First Nationwide Open Access Fiber Optic Network

July 19, 2021
Members of the firm’s Latin America Practice are advising the leading Spanish telecom group.

Telefónica Colombia, a subsidiary of the leading Spanish telecom group Telefónica, and KKR, a leading global investment firm, have announced an agreement to establish Colombia’s first independent nationwide open access wholesale digital infrastructure company. On a mission to bring greater broadband access across Colombia, the new company will expand availability of ultra-fast fiber optic internet, benefitting more consumers and businesses across Colombia. As part of the agreement, KKR will acquire a majority stake in Telefónica'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. Telefónica will be a minority shareholder in the new company, with a 40% stake. The transaction is valued at approximately US$500 million and is subject to customary regulatory approvals.

Latham & Watkins LLP represents Telefónica in the transaction with a cross-border corporate deal team led by Madrid partner Ignacio Pallarés and New York partners Tony Del Pino, Veronica Relea and Guido Liniado, with associates María del Pilar Villanueva, Francisco Lanusse and Alan Rozen.