Flow parent company Liberty Latin America Ltd. has made a preliminary offer to buy another regional telecommunications company, Millicom International Cellular S.A., according to statements from the two companies last week.

The companies were tight-lipped about the deal, only stating that it’s a “preliminary highly conditional non-binding proposal from Liberty Latin” to buy all of Millicom’s shares.

“There can be no assurance that any transaction will proceed or what the deal terms would be,” Liberty Latin stated.

Millicom is a cable and mobile-services provider that operates in markets throughout Africa and Latin America, including Colombia, Honduras, Costa Rica and Guatemala.

Liberty Latin is the parent company of Flow and Cable & Wireless, and is a part of the telecom giant Liberty Global. Liberty Latin operates in more than 20 countries in the Caribbean and Latin America under consumer brands Flow, VTR, Liberty, Mas Movil, BTC and Cabletica.

Liberty Global spun off Liberty Latin as a standalone entity last January, a move that was made in part to lessen Liberty Global’s tax bill in the U.S., according to U.S. Securities and Exchange Commission filings, which stated that the separation will consist of a number of transactions that are “intended to qualify as tax-free spin-offs for U.S. tax purposes.”

Along with its brief announcement about potentially acquiring Millicom, Liberty Latin also provided an update on its insurance claims that were made in the wake of the September 2017 hurricanes, Irma and Maria.

Liberty Latin stated that it has settled all its insurance claims from the hurricanes, which devastated much of the Eastern Caribbean, for a gross total of US$138.5 million.

Liberty Latin stated it has received payments from its insurer totaling US$50 million, of which US$45 million will be allocated to its operations in Puerto Rico and the remaining US$5 million will be allocated to smaller Eastern Caribbean jurisdictions such as the British Virgin Islands and Dominica. The remaining insurance payments will be received throughout the first quarter of 2019, the company stated.

The proceeds of the settlements will be spent between recoveries for business interruption and operating expenses, and recoveries associated with property damages, according to Liberty Latin.

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