CMS Carey & Allende advised ON*NET Fibra and KKR on M&A, telecommunication and acquisition financing matters related to the acquisition of the existing fibre optic network of Entel Chile, comprising the primary fibre-to-the-home (“FTTH”) and distribution networks, and the primary fibre optic network for P2P services, i.e., links for B2B services and mobile backhaul, including intangible assets, a portfolio of 1.2 million houses. Thus, ON*NET Fibra strengthens its position as the main fiber optic operator in the Chile.
Entel and ON*NET Fibra signed an agreement as part of the deal that will enable Entel to continue offering internet services for residences on ON*NET’s network.
The transaction is pending regulatory approval by competition authorities, expected to be close in the first half of 2023.
ON*NET Fibra was formed through a collaboration between Telefónica and KKR in 2021 when Telefónica create an independent subsidiary where it transferred its fibre optic network it had in Chile, comprised of two million real estate units. 60% of the capital for the business was provided by KKR in a transaction that valued OnNet Fibre at USD1 billion (we advised KKR in this transaction). ON*NET Fibra’s network will also continue to expand its coverage with the objective of reaching a total of 4.3 million real estate units by 2024.
