US telecoms company AT&T has reached an agreement to sell its entire business in Puerto Rico and the Virgin Islands to Liberty Latin America for US $1.950 billion in cash, it said in a statement.
The deal includes all network assets, including the spectrum that AT&T owns, as well as real estate, rentals and all its customers, which include 1.1 million mobile phone users. The AT&T workforce in these two regions is about 1,300 employees.
Instead, AT&T will retain all DirecTV customers, its cable television platform, as well as certain corporate clients.
To ensure a “smooth” transition for customers, the US telecom company will support Liberty Latin America in certain functions after the closing of the agreement, which both firms estimate will occur within a period of six to nine months.
The firm will use the funds received from the operation, after the payment of dividends, to continue with its deleveraging plan and its monetization initiatives.
“This transaction is the result of a current strategic review of our balance sheet and assets to identify monetization opportunities,” said AT&T CFO John Stephens.
At the beginning of September, the investment fund Elliott Management revealed that it had a minority stake in the company equivalent to US $3.2 billion
After reporting its position in the company, the fund sent a letter to the board of directors in which it urged to sell non-strategic assets and reduce leverage to boost the share price.