Several firms on Peru’s first open access fibre optic network
Several firms have advised on a deal between Telefónica Hispanoamérica, KKR and Entel Perú, through which KKR acquired 64% of fibre optic wholesaler PangeaCo as well as the existing fibre optic networks of Telefónica del Perú and Entel Perú.
As a result of the acquisition, KKR will have a 54% majority stake in PangeaCo, with Telefónica Hispanoamérica holding 36% and Entel Perú 10%.
The transaction will combine the existing fibre optic networks of PangeaCo, Telefónica del Perú and Entel Perú into an independent company controlled by KKR, enabling the construction of the first nationwide open access wholesale fibre optic company with the mission to provide greater access to fibre optic connectivity throughout the country, under the name ON*NET Fibra de Perú.
Telefónica will receive certain variable payments over the next four years following the closing of the transaction, which is subject to regulatory approvals, including that of the Peruvian competition authority (Indecopi).
KKR is making the investment through its KKR Global Infrastructure Investors III fund and plans to provide operational support to Peru’s ON*NET Fibra through NEXO LatAm, a digital infrastructure business that supports KKR’s Infrastructure strategy across Latin America. KKR and NEXO LatAm have significant experience in supporting the successful expansion of open access fibre optic investments.
Simpson Thacher and Rodrigo Elias & Medrano advised KKR internationally and locally, respectively, while Latham & Watkins and Brigard Urrutia advised Telefónica Hispanoamérica internationally and locally, respectively, with Estudio Echecopar also advising Telefónica in Peru. Rebaza Alcázar & De Las Casas, along with Claro & Cía advised Entel Perú.
Daniel Quiñones, Sebastián Villegas and Fátima Almonacid acted as Entel in-house counsels.
Simpson Thacher’s team included Breen Haire (pictured top left), Ana Sanchez, Mark Kunzman, Andrew Kingsbury and John Charles from the Mergers & Acquisitions team; Adam Shapiro (pictured top centre, left), Robert Meyer, Austin Vance and Mark Marzziotti from Banking & Credit; and Nancy Mehlman (pictured top centre, right) and William Smolinski (pictured top right) from Tax.
Rodrigo Elías & Medrano’s team was made up by partner Eduardo López and associates María Angélica Meneses, Renzo Rossi and Francisco Florindez.
L&W’s team was led by partners Tony Del Pino (pictured bottom left), Ignacio Pallarés (pictured bottom centre) and Guido Liniado (pictured bottom right), with associates Francisco Lanusse and Andres Chester.
Brigard Urrutia’s team comprised partner Darío Laguado and associates Gonzalo Orrego Vélez, Pablo Espinosa and Juanita Calderón Padilla.
Estudio Echecopar’s team was represented by partners Luis Miguel Almendariz and Rafael Picasso, as well as principal associates Crosbby Buleje, Carla Figallo and Dora Ramos.
Rebaza Alcázar & De Las Casas’ team consisted of partners Felipe Boisset and Camilo Maruy, senior associates Rafael Santín, David Baracco and Pablo León and associates Fiorella Wismann and María José García.
Claro & Cía’s team involved partners Felipe Larraín and Joaquín Rodríguez.
