Digicel is buying out the operations of one of its rivals in Jamaica, while selling two of its businesses to that same competitor. It has signed an agreement with América Móvil to acquire the Claro operations in its only English-speaking Caribbean market, and to sell to América Móvil its businesses in El Salvador and Honduras.
The financial terms of the transaction are not being disclosed. However, according to a statement issued by Digicel, it will get a net cash payment.
"The transaction is subject to regulatory approvals and is expected to close in the second calendar quarter," it said. América Móvil, Claro's parent company, was spun out of Mexico's Telmex in September 2000 and is the largest wireless service provider in Latin America. It operates under the brands Telcel, Claro, Comcel, Porta, Tracfone and Oceanic Digital through its subsidiaries in 17 countries. After almost ten years of operation, Digicel has 11.5 million customers across its 32 markets in the Caribbean, Central America and the Pacific.
(www.Caribbean360.com)