© Stocksak. FILEPHOTO: Workers clean out the windows of the Entel office building in Lima district, Chile. September 1, 2018, by Marian Bazo. REUTERS/Mariana Bazo/File Photo
SANTIAGO (Stocksak) – Chilean telecoms giant Entel said on Saturday it would sell the assets of its fiber optic business, which provides services to homes, to local company ON*NET Fibra in a deal worth $358 million.
The sale, which is being led by BNP Paribas (OTC) and Santander (BME), as well as financial adviser Scotiabank, will need to be approved by Chile’s economic regulator. This approval is expected in the first half 2023.
Entel and ON*NET Fibra signed an agreement as part of the deal that will enable Entel to continue offering internet services for residences on ON*NET’s network, Entel said in a statement.
“By selling out our network, rather that leaving the fixed markets, we are increasing coverage quickly to provide our internet services to home at efficient prices and without having to invest the sums necessary for a fiber deployment.
Following the closing of this transaction, ON*NET Fibra is expected to reach more than 4.3 million homes in 2024.
Entel has operations throughout Chile and Peru, and has more than 20,000,000 mobile subscribers.