Liberty Latin America and Millicom to merge Costa Rica operations

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Liberty Latin America announced on Thursday that Liberty Costa Rica will merge with Millicom International Cellular’s Tigo Costa Rica via an all-stock deal focused on boosting investment in fibre networks in the country.

Under the initial terms of the deal, Liberty Latin America and its minority partner in Costa Rica will hold around 86% in the joint operation, while Millicom will hold the remaining 14%, although the exact final ownership percentage will be confirmed once the deal closes.

According to Liberty Latin America, the combined Liberty/Tigo entity is valuated at an adjusted OIBDA (operating income before depreciation and amortization) of approximately US$255 million, with a net debt of US$533 million. The new operation will have over 440,000 broadband subscribers.

The deal comes as Costa Rica’s multiple operators are racing to deploy fibre networks across the country. Liberty Latin America president and CEO Balan Nair said the deal will create a scaled platform that will accelerate fibre investments and increase competition.

“By combining Liberty and Tigo, the fixed operations will accelerate the transition to FTTH and will enable us to deliver exceptional high-speed services for consumers, provide enhanced customer experiences, drive innovation, and offer growth opportunities for our people,” he said in a joint statement.

Millicom chair Mauricio Ramos added that the merger would generate new efficiencies and improve commercial offerings, providing customers with access to mobile services and premium content.

“It creates a stronger, more competitive entity with high investment capacity to meet the accelerated technological changes, network expansion, and service improvements, ensuring that long-term market conditions remain competitive while maintaining high-quality and valuable services for our customers in Costa Rica,” he said.

The deal is still subject to the usual closing conditions and regulatory authorizations. LLA and Millicom expect the deal to be completed during the second half of 2025.

Liberty Latin America entered the Costa Rican market in July 2020 via a US$505 million deal to buy out Telefonica Costa Rica (which, ironically, Millicom attempted to buy in 2019 but ultimately abandoned the deal). The deal was completed over a year later in August 2021.

The Costa Rica deal comes just a day after Millicom revealed it has entered into a non-binding MoU to acquire a 67.50% stake in Telefonica Colombia for approximately US$400 million.

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