Digicel plans to liquidate Panama business after rivals’ merger approved

ByConchita Sutphin

Apr 7, 2022 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

By Elida Moreno

PANAMA City (Reuters) – Mobile cellphone operator Digicel mentioned Wednesday it plans to wind down operations in Panama following the government’s approval of a merger among competition Cable & Wi-fi Panama (CWP) and Claro.

The merger, in which the Panamanian govt will be a 49% shareholder and gives the providers 56% of the market, “correctly spells the end of opposition in the telecoms sector for scaled-down players,” Digicel reported in a assertion.

Digicel explained it was making use of for voluntary liquidation, obtaining not succeeded in numerous initiatives soon after CWP declared in late 2021 it would buy The us Movil subsidiary Claro’s functions in Panama.

These initiatives bundled appointing an expenditure lender to market place the business to monetary and strategic parties, substantial engagement with authorities about the planned merger and proposals to migrate prospects to a different operator which had been not taken ahead.

With Digicel exiting the industry, there would be only just one telecom service provider, Millicom-owned Tigo, operating in addition to the mixed CWP-Claro entity in Panama.

“It is not sustainable for us to continue investing in the market place,” Digicel chairman Denis O’Brien mentioned in the assertion, noting the organization paid out $86 million for its running license in 2008 and one more $575 million on advancements because.

Digicel claimed it did not be expecting the announcement to have a product impact on its economic ailment.

(Reporting by Elida Moreno in Panama Town Writing by Kylie Madry Editing by Edwina Gibbs)