Chilean holding company Almendral has agreed to merge its mobile subsidiary Entel with Grupo GTD, which provides TV, telephone and internet services through its subsidiaries.
Entel said in a statement that the merger would take place through a share…
Chilean holding company Almendral has agreed to merge its mobile subsidiary Entel with Grupo GTD, which provides TV, telephone and internet services through its subsidiaries.
Entel said in a statement that the merger would take place through a share exchange that will leave Grupo GTD with a 9.8% share in Entel once the merger is completed.
Entel said that completion of the merger is several months away, as various parts of the deal need to be fine-tuned and appropriate approvals need to be obtained.
Entel’s general manager, Antonio Buchi, described the merger as being of great importance for the company’s future development, saying it will allow it to improve in areas like fixed connectivity and the home segment.
Buchi said: “The largest coverage of a fibre-optic access network, among other factors, will contribute to make Entel into a more competitive actor in a telecoms industry with large players that are already integrated and that is increasingly convergent.”
Grupo GTD’s president said that the agreement will allow larger investments in networks and equipment.
Grupo GTD is a holding company of seven separate businesses, which provide a range of telecoms, internet and TV services. In 2010, it acquired Telefonica del Sur, the fixed and mobile operator and ISP.
Entel’s results for the three months up to the end of September showed EBITDA of Ps132.8bn (US$253.4m) and net income of Ps46.2bn (US$88.2m).
