As Chile's telecommunications market continues to evolve, operators are reshaping themselves in a new industry setting. Trunking operator WOM announced last week that it has closed the largest tower deal in Chile with Phoenix Tower International, securing the sale of 3,800 towers.

This deal will mean entry into Chile of Phoenix Tower International, which currently owns through its affiliates and subsidiaries more than 22,000 telecommunications towers worldwide.

The deal for WOM Chile, in which law firm Albagli Zaliasnik (az) provided advice, is worth around US$ 930 million.

The company’s CEO reported that its focus moving forward will be on 5G and extending coverage to even the most rural areas of Chile as well as “delivering upgraded connectivity."

From a legal perspective, this deal is an example of front-line involvement that surpasses previous accomplishments within the telecoms sector in Chile, as the influence of leadership shown by az partners Alvaro Rosenblut and Rodrigo Albagli go far beyond the negotiation table.

“The landscape of cross border M&A in the region is advancing constantly, and we are proud of az’s role in helping WOM attain such a breakthrough achievement. More importantly is the relationship that this transaction signifies in terms of being entrusted with strategic business development and key decision-making,” said Rodrigo Albagli, Managing Partner of az.

WOM arrived in Chile in 2015 and has since then positioned itself as the fastest growing mobile telecommunications provider in the country.

Funding the transaction will be in part by a Scotiabank financing facility as well as additional finance providers, CDPQ and Ares Management Corporation. Various Blackstone Inc. funds, including businesses led by Blackstone Infrastructure and Blackstone Tactical Opportunities provided the equity for the transaction.

Legal Service providers in Cross Border mergers and acquisitions have important responsibilities hinging on the knowledge and skill they offer their clients through each step of the transaction. External counsel such as law firms are essential in creating transparency and promoting effective communication to ensure safe deals.  Maximum collaboration and trust between internal and external teams remains the crucial component in not only overseeing a deal’s progress, but also in guaranteeing its successful execution.

In WOM’s case, both full-service law firms, Albagli Zaliasnik and Allen & Overy acted as legal advisors on this transaction.

Dependent on the fulfillment of satisfactory closing conditions, the initial closing of the transaction is expected to occur in the third quarter of 2022.