Telefónica and KKR, through their joint fiber optic subsidiary On the netthey announced acquisition of the Entel network in Chile for $358 million (365 million euros), which will control a portfolio of 1.2 million homes. The telephone subsidiary thus consolidates its position as the main wholesale fiber optic operator in the Andean country, reaching 3.9 million properties under its management.
The operation also includes the obligation to reach 4.3 million by 2024 and for the provision of long-term services to Entel, and fiber optic access and residential services, a support agreement, a channel and camera agreement and a transitional agreement in the provision of services, as reported by the seller to the Chilean stock exchange. The closing of the transaction is expected in the first half of 2023after obtaining all relevant authorizations.
The transaction thus includes Telefónica and its biggest competitor in Chile. Entel entrusted BNP Paribas with the process of looking for a partner or selling its optical network. Last year, Telefónica gave KKR control of 60% of On Net in a deal valued at €480 million that valued the company’s fiber network at €1,000 million. This allowed the Álvarez-Pallete company to reduce its debt by 400 million.