On July 6, Entel, KKR and Telefónica entered into certain agreements in order for Entel and KKR to acquire a 10% and 54% stake, respectively, in Pangeaco, Telefónica's subsidiary in charge of its fiber optic business in Peru.
Entel and Telefónica are two of the most important telecommunications service providers in Peru. The competitors joined forces to deploy fiber optic infrastructure in several regions of Peru to provide wholesale services (including FTTH wholesale services), together with a significant investment from Kohlberg Kravis Roberts (KKR), through Pangeaco.
Closing of the transaction is subject to the completion of certain conditions precedent, including the corresponding antitrust clearance.
Terms of the transaction include the execution of share subscription agreements by Entel and KKR, services agreement whereby Pangeaco will provide connectivity services to Entel an Telefonica and the sale of fiber optics from Entel and Telefonica to Pangeaco.
The transaction was particularly complex due to the technical aspectsthe relevance and size of the assets involved and the highly regulated environment of the telecommunications companies, as well as the analysis of the required antitrust authorizations.
Entel’s legal counsels:
In-house counsels (Peru): Daniel Quiñones, Sebastián Villegas and Fátima Almonacid
Rebaza, Alcázar & De Las Casas (Peru): Partner Felipe Boisset, Camilo Maruy, Senior Associates Rafael Santín, David Baracco and Pablo León and Associates Fiorella Wismann and María José García
Claro & Cía (Chile): Partners Felipe Larraín and Joaquín Rodríguez
KKR’s legal counsels:
Simpson Thacher & Bartlett (NY): Partner Breen Haire and Associates Ana Maria Sanchez, Mark Junzman, Andrew Kingsbury and John Charles
Rodrigo, Elías & Medrano (Peru): Partner Eduardo López and Associates María Angélica Meneses, Renzo Rossi and Francisco Florindez