KKR commits US$200mn investment for major fiber transaction in Peru
The Peruvian units of Spanish telco Telefónica and Chile’s Entel and global investment firm KKR announced an agreement under which KKR will acquire a majority interest in Telefónica-owned fiber company PangeaCo and the existing fiber optic networks of Telefónica del Perú and Entel Perú.
The announcement includes a US$200mn commitment of additional investment to more than double the ultra-fast fiber network from more than 2mn homes passed today to 5.2mn in 86 provinces by the end of 2026, according to a joint statement on Friday.
The transaction will combine the networks into a new nationwide open access wholesale fiber optic network.
KKR will own 54% of the company while Telefónica Hispanoamérica will have a 36% share and Entel Perú the other 10%.
The new company will be named On*Net Fibra de Perú, in line with units in Chile and Colombia. Telefónica confirmed previously that it was looking for opportunities to sell its fiber business in Peru.
In Chile, On*Net has expanded homes passed from 2.4mn to 3.7mn under KKR ownership.
On*Net Chile also has an agreement to buy Entel's fiber optic networks in the country.
In Colombia, the shared network model had allowed On*Net Colombia to double its footprint from 1.2mn to 2.4mn homes passed.
Telefónica del Perú and Entel Perú will be anchor tenants on the Peruvian open access network.
In Peru, regulator Osiptel expects fiber to the home to overtake HFC connections this year.
According to Osiptel, fiber optic connections accounted for 42% of total fixed internet accesses at the end of March, increasing 79.6% over 12 months.
The residential broadband market is led by Telefónica with a share of 49.4%. Claro ranked second with 25.6%, followed by Wi-NET/Optical Technologies (10.1%) and WOW (5.9%). Entel was in fifth place with 2.1%, ahead of the Fiberluz/Fiberline group with 1.2%.
The transaction between KKR, Telefónica and Entel is subject to regulatory approvals, including from Peru’s antitrust agency Indecopi.
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