America Movil has announced that it has entered into an agreement with Digicel Group to acquire 100% of Digicel’s operations in Honduras and El Salvador. As part of the transaction, America Movil will sell Jamaican subsidiary Claro to Digicel.
The completion of the transaction is subject to governmental and regulatory approvals in Honduras, El Salvador and Jamaica, among other conditions, and is expected to be finalised during the second quarter of 2011. The financial terms of the transaction have not being disclosed, although it has been reported in the Jamaican press that there will be a net cash payment to Digicel.
The deal will allow Digicel to solidify its place at the top of the Jamaican mobile telecoms arena, where it claimed almost 2.1 million subscribers at the end of 2010. Claro Jamaica will add a further 630,000 subscribers to the tally, leaving Cable & Wireless (LIME) as the only other wireless network operator on the island, with an estimated 711,000 customers at the same date.