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News from the Caribbean as of
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Verizon to sell Caribbean operations
Tuesday, April 4, 2006
NEW YORK, USA (AFP): US telecom giant Verizon Communications said Monday that it reached agreements to sell its Caribbean and Latin American operations in three transactions valued at 3.7 billion dollars.
The purchasers include Mexican-based wireless group America Movil SA de CV and a joint venture of the same group with Telefonos de Mexico (Telmex).
The deals will mean Verizon will divest its telecom operations in the Dominican Republic, Puerto Rico and Venezuela. It owns 100 percent of Verizon Dominicana, a 52 percent interest in Telecomunicaciones de Puerto Rico, and a 28.5 percent interest in Compania Anonima Nacional Telefonos de Venezuela (CANTV).
"For Verizon, these transactions are a natural step in the evolution of our growth and shareholder value creation strategies," chairman and chief executive Ivan Seidenberg said in a statement.
"Over the years, our investments in the Caribbean and Latin America have been a source of solid financial performance, but today they represent a small part of our revenue base that is less aligned with our core business focus and future growth."
America Movil agreed to purchase Verizon's interest in Verizon Dominicana, which has some 2.7 million wireless, wireline and broadband customers.
The mobile phone group also agreed to purchase Verizon's 52 percent interest in Puerto Rico Telephone, which has some 1.6 million customers.
The other shareholders in Puerto Rico Telephone -- Popular, Inc. (13 percent), the Puerto Rico government (28 percent) and the company's employee stock ownership plan (seven percent) -- have the right to sell their shares to the buyer on the same terms, according to the statement.
An entity jointly owned by America Movil and Telmex agreed to purchase Verizon's indirect interest in CANTV, and will make a tender offer the remaining shares of the Venezuelan group.
The deals are subject to separate regulatory approvals in the various jurisdictions, Verizon said.
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