Digicel completes Claro takeover

Telecommunications company Digicel has completed its acquisition of Claro.



In a release today Digicel said its completed the acquisition of América Móvil’s business in Jamaica and the sale of its business in Honduras to América Móvil.



The release also said that an update on the previously announced sale of Digicel’s business in El Salvador to América Móvil will be provided in due course.



Under the transaction, which essentially marks a retreat from each other's turf, Denis O'Brien's Digicel Group is selling his Honduras and El Salvador assets to Carlos Slim's America Movil, and buying its Claro Jamaica business.



Concurrently, Digicel agreed as part of negotiations to reduce calling rates across networks by J$3 and J$2 for peak and off-peak periods, respectively.



The Digicel/Claro transaction was initially set to close by the end of June but was delayed by regulatory scrutiny. The financial terms of the deal have not been disclosed, however, Digicel is set to receive a net cash payment, reportedly of US$350 million.



Digicel began operations 10 years ago in Jamaica and expanded into some 32 countries over the decade.



The company last year reported US$2.23 billion in revenue and a subscriber base of 11.5 million, more than two million of them in Jamaica.



Digicel's acquisition of Claro Jamaica gives it access to a 3G network in its home market.



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