Liberty Latin America sells WOW Tel stake in Peru

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Reviewed by
Jubin VScanX News Team
Key Highlights

Liberty Latin America Ltd and its partners have agreed to sell their stakes in WOW Tel S.A.C., a fixed broadband provider in Peru, to America Movil Peru S.A.C. The transaction, part of a portfolio rationalization strategy, is subject to regulatory approval from Peru's National Institute for the Defense of Competition and Protection of Intellectual Property (INDECOPI).

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Liberty Latin America Ltd and its partners have entered into an agreement to sell their respective stakes in WOW Tel S.A.C. to America Movil Peru S.A.C., a subsidiary of America Movil. WOW operates primarily as a fixed broadband internet service provider in Peru. The transaction aligns with Liberty Latin America’s strategy to rationalize its operating portfolio and optimize capital allocation.

Liberty Latin America acquired a minority stake in WOW in 2021 and made additional investments in the intervening period. The business is accounted for as an equity method investment. The completion of the sale is subject to certain closing conditions, including regulatory approval by Peru’s National Institute for the Defense of Competition and Protection of Intellectual Property (INDECOPI).

Transaction Details

The following table outlines the key parties involved in the agreement:

Entity Role
Liberty Latin America Ltd Seller
Partners in Peru Seller
WOW Tel S.A.C. Target Company
America Movil Peru S.A.C. Buyer

Regulatory Conditions

The transaction requires approval from Peru’s National Institute for the Defense of Competition and Protection of Intellectual Property (INDECOPI). The deal cannot close until this and other conditions are satisfied.

Disclaimer: This article is AI-generated using data from ViewTrade. ScanX is not liable for any inaccuracies.

How will the sale proceeds impact Liberty Latin America’s capital allocation strategy moving forward?

What are the potential antitrust concerns INDECOPI might raise regarding America Movil's increased market share?

Could this transaction signal a broader trend of Liberty Latin America divesting non-core assets in other regions?

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Citigroup downgrades Liberty Latin America to Neutral, raises target to $8

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Reviewed by
Radhika SScanX News Team
Key Highlights

Citigroup analyst Michael Rollins downgraded Liberty Latin America from Buy to Neutral. The firm raised its price target to $8 from $6.45.

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Citigroup analyst Michael Rollins has downgraded Liberty Latin America from Buy to Neutral. The firm simultaneously raised its price target for the stock to $8 from the previous $6.45.

Rating and Price Target Changes

The adjustment reflects a revised outlook on the company's performance. The new price target of $8 represents an increase over the prior estimate of $6.45, despite the reduction in the rating from Buy to Neutral.

Metric Previous New
Rating Buy Neutral
Price Target $6.45 $8
Disclaimer: This article is AI-generated using data from ViewTrade. ScanX is not liable for any inaccuracies.

What specific factors drove the decision to downgrade the rating while simultaneously raising the price target?

How might Liberty Latin America's operational performance need to evolve to regain a Buy rating?

What are the potential market reactions to this mixed signal from Citigroup?

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More News on Liberty Latin America - Class A

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