CMS represents KKR in Entel Chile fibre optic acquisition
CMS Carey & Allende has represented KKR and its company On*Net Fibra (KKR) in M&A and financing matters in the acquisition of fibre optic infrastructure from ENTEL in Chile.
In total, 1.3 million homes passed (HP) with fibre optic, present in 62 communes of the country. As part of this transaction, On*Net Fibra will also provide connectivity services through the provision of long-term fibre optic infrastructure to ENTEL, allowing ENTEL to continue offering Internet services throughout the country and to have immediate access to more than 4.5 million unique fibre optic HP. This, thanks to the network of more than 38 thousand kilometres that the wholesale company has already deployed from Arica to Porvenir.
This agreement contemplates an investment of USD 425 million, with which On*Net Fibra will complete a coverage presence in 180 communes distributed throughout the 16 regions of Chile.
In addition, as part of the approval, a smaller percentage of past homes (those acquired from Entel in the 8 most overlapping communes) will be divested as agreed between the parties and to the FNE, in the context of the approval of the transaction.
The approval of the transaction was granted by the Fiscalía Nacional Económica. Claro y Cía. acted as counsel to Entel, while PPU and Allen & Overy provided legal advice to the banks.
CMS’s M&A team included partners Jorge Allende Destuet (pictured left) and Ignacio Errazquin (pictured right) and associates Josefine Recalde, Isidora Rencoret and Sofia Tuane, while the financing team also included partner Jorge Allende Destuet, together with senior associate Enrique Vergara and associate Tomas Herlin.
