Bank Street was pleased to highlight its role as financial advisor to KKR in connection with its agreement with Telefónica Colombia to establish Colombia’s first independent nationwide open access wholesale digital infrastructure company in a transaction valued at approximately $500 million. With the investment from KKR, the new company plans to expand existing fiber optic coverage from approximately 1.2 million homes today to at least 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.
“We are thrilled to, once again, be working with Telefónica to provide greater broadband access to those who need it, and to be doing so in Colombia, a country we believe is primed for significant growth ahead and which serves as an attractive destination for investors," commented Waldemar Szlezak, Managing Director on KKR’s Infrastructure investment team. "This new venture in Colombia, along with ON*NET Fibra de Chile, demonstrates the potential to invest in innovative financing and growth strategies to promote digital infrastructure in Latin America.”
KKR will acquire a majority stake in Telefónica Columbia's fiber optic network and make the network open access through a newly established independent entity, 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.
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