Onnet Fibra Colombia SAS through KKR Global Infrastructure Investors III L.P., managed by KKR & Co. Inc. entered into a sale and purchase agreement to acquire a 60% stake in fiber-to-the-home optic fibre network of Colombia Telecomunicaciones S.A. ESP for $300 million.

Onnet Fibra Colombia SAS through KKR Global Infrastructure Investors III L.P., managed by KKR & Co. Inc. (NYSE:KKR) entered into a sale and purchase agreement to acquire a 60% stake in fiber-to-the-home (FTTH) optic fibre network from Colombia Telecomunicaciones S.A. ESP (BVC:COLTEL) for $300 million on July 16, 2021. Under the transaction, Colombia Telecomunicaciones will receive a payment of $200 million and will be eligible for a performance-based consideration of up to $100 million.

As a part of the transaction, Colombia Telecomunicaciones will establish Colombia's first independent nationwide open access wholesale digital infrastructure company, in which Colombia Telecomunicaciones S.A. ESP will hold the remaining 40% stake. The company will be run independently by a local team in Colombia. Fiber-to-the-home (FTTH) optic fibre network reported EBITDA of $25 million for the year ended December 31, 2020, implying a multiple of 20.0x EBITDA.

The transaction is subject to customary regulatory and antitrust approvals. As of October 6, 2021 European Commission (EC) approved the deal. The Bank of Nova Scotia (TSX:BNS) and The Bank Street Group LLC acted as financial advisors to KKR & Co.

Inc. Antonio Del Pino, Guido Liniado, Ignacio Pallarés and Veronica Relea of Latham & Watkins LLP advised Colombia Telecomunicaciones S.A. ESP. Javier Villasante of Cuatrecasas, Gonçalves Pereira, S.L.P. acted as legal advisor to KKR parent of Onnet Fibra Colombia SAS. Daniel Londoño Pinzón, Jimena González Alarcón, Silvia Robledo Rojas and Olga Santamaría of Gómez-Pinzón Abogados acted as legal advisor to KKR & Co.

Inc. parent of Onnet Fibra Colombia SAS.