Digicel plans to liquidate Panama business after rivals’ merger approved

Chairman & Founder of Digicel Group Denis O’Brien reacts all through the APEC CEO Summit 2018 at the Port Moresby, Papua New Guinea, November 16, 2018. Fazry Ismail/Pool by using REUTERS/

PANAMA Metropolis, April 6 (Reuters) – Mobile cellphone operator Digicel stated Wednesday it programs to wind down operations in Panama pursuing the government’s approval of a merger concerning rivals Cable & Wireless Panama (CWP) and Claro.

The merger, in which the Panamanian governing administration will be a 49% shareholder and offers the providers 56% of the market, “proficiently spells the conclude of competitors in the telecoms sector for smaller gamers,” Digicel mentioned in a statement.

Digicel said it was implementing for voluntary liquidation, obtaining not succeeded in a variety of initiatives right after CWP introduced in late 2021 it would obtain The united states Movil (AMXL.MX) subsidiary Claro’s operations in Panama.

These initiatives incorporated appointing an investment decision lender to market place the small business to financial and strategic events, intensive engagement with authorities about the planned merger and proposals to migrate prospects to another operator which have been not taken forward.

With Digicel exiting the current market, there would be only a person telecom service provider, Millicom-owned (MICC.F) Tigo, operating in addition to the mixed CWP-Claro entity in Panama.

“It truly is not sustainable for us to proceed investing in the industry,” Digicel chairman Denis O’Brien reported in the statement, noting the organization compensated out $86 million for its working license in 2008 and a different $575 million on enhancements considering that.

Digicel said it did not anticipate the announcement to have a product impression on its money issue.

Reporting by Elida Moreno in Panama City Crafting by Kylie Madry Modifying by Edwina Gibbs

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