KKR announced an agreement with Telefónica Colombia to establish Colombia's first independent nationwide open access wholesale digital infrastructure company. On a mission to bring greater broadband access across Colombia, the new company will expand availability of ultra-fast fiber optic internet, benefitting more consumers and businesses across Colombia. As part of the agreement, KKR will acquire a majority stake in Telefónica's existing fiber optic network, the largest in Colombia, and make the network open access through a newly established independent entity, which KKR will control as the majority shareholder.

Telefónica will be a minority shareholder in the new company, with a 40% stake. The company will be run independently by a local team in Colombia but brings together the expertise of both KKR and Telefónica to build and operate Colombia's premier digital infrastructure network. Recently, the companies similarly joined efforts to establish ON*NET Fibra as Chile's first open access wholesale fiber optic network.

Upon closing of the transaction, Telefónica's existing fiber optic network will become open access and available for all internet service providers in Colombia to utilize, including Telefónica. With the investment from KKR, the new company plans to expand existing fiber optic coverage from approximately 1.2 million homes today to, at minimum, 4.3 million homes by the end of 2024, covering at least 87 municipal areas in Colombia, with more than half consisting of underserved areas outside of high-income urban areas. The network will utilize state-of-the art technology to deliver connection speeds up to 1000 times faster than conventional networks currently available to most Colombians, improving both quality and coverage.

The investment will help to close the digital gap, facilitate new 5G connectivity, and provide access to telework, telehealth, and virtual education to far more Colombians than have it today. The transaction is valued at approximately $500 million and is subject to customary regulatory approvals. The new company will be controlled by KKR and will leverage the firm's global experience in digital infrastructure and in operating and deploying fiber networks, including its existing fiber optic investments in ON*NET Fibra in Chile, FiberCop in Italy, HyperOptic in the UK, and Open Dutch Fiber in the Netherlands.