AT&T to Promote Puerto Rico and U.S. Virgin Islands Operations – The Wall Avenue Journal
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AT&T to Promote Puerto Rico and U.S. Virgin Islands Operations – The Wall Avenue Journal

AT&T Inc.


T zero.19%

has agreed to promote its Puerto Rican and U.S. Virgin Islands companies to

Liberty Latin The United States Ltd.


LILA Three.06%

for $1.ninety five billion in money, allowing the telecommunications broad to shave its debt load and pass nearer to repurchasing shares.

AT&T’s operation in Puerto Rico affords cell, landline and data superhighway connections. It had 1.1 million wi-fi subscribers. As portion of the deal, about 1,300 AT&T staff will be transferred to Liberty Latin The United States.

The two companies talked about they set a question to the deal to shut interior six to 9 months. The Wall Avenue Journal earlier Wednesday reported the companies had agreed to a deal.

Puerto Rico accounts for a tiny sliver of AT&T’s home operations, but shedding the unit will relieve it work down a broad debt load accumulated thru its $Eighty billion-plus acquisition of Time Warner final year.

The deal signals development on AT&T’s goal of advertising and marketing and marketing noncore resources, one thing activist investor Elliott Management Corp., which recently disclosed a stake in the firm, is additionally pushing. AT&T has additionally supplied its stake in streaming service Hulu.

On Wednesday, AT&T talked about the deal brings to extra than $11 billion the amount of money this is able to perhaps perhaps have raised from asset gross sales this year. The firm talked about its expects to attain to repurchasing shares in the fourth quarter, along with debt discount.

Liberty is already the largest pay-TV and broadband provider on the island. Cable magnate

John Malone,

who holds a 25.5% vote casting stake in Liberty Latin The United States, and Liberty Latin The United States CEO

Balan Nair

have told investors they’d adore to enlarge in the blueprint thru disciplined mergers and acquisitions.

Liberty plans to finance the money deal in broad portion by elevating debt towards the mixed Puerto Rican operation, one individual conscious of the topic talked about.

AT&T at the muse entered Puerto Rico in 2009 after it obtained Centennial Communications Corp., a rural telecom firm with a broad piece of income from the island, for beneath $1 billion.

The complexity of the Puerto Rican unit slowed negotiations. 1000’s of residents of the commonwealth use plenty of months out of the year on the U.S. mainland, as an illustration, which made appealing the job of counting subscribers, in step with one other individual conscious of the topic. The island additionally used to be heavily damaged in 2017 by Storm Maria.

Liberty Latin The United States is a publicly traded telecom and cable provider that operates in Chile, Puerto Rico, the Caribbean and other international locations in Latin The United States. The firm spun out final year from

Liberty Worldwide,

the international cable operator headed by Mr. Malone. The Latin The United States operator in the intervening time has a market price of about $Three billion.

Write to Shalini Ramachandran at shalini.ramachandran@wsj.com and Drew FitzGerald at andrew.fitzgerald@wsj.com

Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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October 9, 2019

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