KKR Invests in Perú’s First Open Access Fiber Optic Network
07.10.23
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Simpson Thacher is representing KKR in connection with its agreement with Telefónica Hispanoamérica and Entel Perú under which KKR will acquire a majority interest in PangeaCo and the existing fiber optic networks of Telefónica del Perú and Entel Perú to build Perú’s first nationwide open access wholesale fiber optics company with the mission to bring greater access to fiber optics connectivity across the country. KKR will own a 54% controlling interest in PangeaCo, with 36% owned by Telefónica Hispanoamérica and 10% owned by Entel Perú. The transaction will combine the existing fiber optic networks of PangeaCo, Telefónica del Perú and Entel Perú into an independent company controlled by KKR. The newly formed network will be open access, allowing usage to all internet service providers for the first time. Through the combination of these networks, KKR will establish ON*NET Fibra de Perú as the new name for the platform which will independently build and operate the nation’s largest fiber optic network with world-class quality standards.
KKR is making the investment through its KKR Global Infrastructure Investors III fund and plans to provide operational support to ON*NET Fibra de Perú through NEXO LatAm, a digital infrastructure business supporting KKR’s Infrastructure strategy across Latin America. KKR and NEXO LatAm have significant experience supporting the successful expansion of open access fiber optic investments.
The Simpson Thacher team includes Breen Haire, Ana Sanchez, Mark Kunzman, Andrew Kingsbury and John Charles (M&A); Robert Meyer, Austin Vance and Mark Marzziotti (Banking and Credit); Nancy Mehlman and William Smolinski (Tax); and Étienne Renaudeau and Pauline Patat (Antitrust).