Luxembourg-based telecoms operator Millicom could be set to acquire 80% of Paraguayan cable operator Cablevision for over US$150m, according to a media report.
Paraguayan newspaper La Nacion reported rumours that Millicom could acquire the 60% stake…
Luxembourg-based telecoms operator Millicom could be set to acquire 80% of Paraguayan cable operator Cablevision for over US$150m, according to a media report.
Paraguayan newspaper La Nacion reported rumours that Millicom could acquire the 60% stake held by Argentine conglomerate Grupo Clarin and a 10% stake from businessman Gustavo Pedrozo.
The operation would reportedly leave Millicom with an 80% stake, while Pedrozo would have a 20% stake.
The publication claimed that the deal value was not known exactly, but would be over US$150m.
La Nacion also reported that state-owned telco Copaco had pulled out of the race to acquire a stake, citing an official saying that the government was not convinced by the business model.
Other local media reported that the government had stated that it was not in a position to pay a high price tag of around US$200m for Cablevision.
Millicom declined to comment.
A Cablevision spokeswoman dismissed the report, saying that the company is still offering its services and developing its investment plan. She did say that the company is still looking for a “strategic partner” for Cablevision in Paraguay.
Cablevision said in February that it was looking for strategic partners in order to expand its services in Paraguay. It also said at the time that it was evaluating actions and investments that would allow it to offer new services.
America Movil and Telecom Argentina have previously been reported in the local media as potential suitors for Cablevision.
Cablevision provides cable TV and internet services.
Millicom already provides mobile services in Paraguay through its Tigo brand. It also noted in its 2011 results, released in early March, that it plans to roll out a “greenfield cable operation” in the greater Asuncion area this year.
