América Móvil and Liberty Latin America confirmed that América Móvil will be consolidating ClaroVTR into its ongoing operations.
ClaroVTR is a Chilean telecommunications company that operates under a joint venture of the Mexican telecommunications giant América Móvil and Liberty Latin America.
ClaroVTR was formed in 2000 through the merger of Chile's fourth and fifth largest telecommunications companies, VTR (owned by Telefónica) and Claro (owned by América Móvil).
In 2004, América Móvil acquired a majority stake in ClaroVTR, and since then, the company has expanded its services and network coverage across Chile.
In 2016, Liberty Latin America Limited, a publicly traded company listed on the NASDAQ stock exchange, acquired a 20% stake in ClaroVTR from América Móvil for approximately $800 million. As of 2022, ClaroVTR has around 1.3 million subscribers across Chile.
In a press release, América Móvil said it has been providing fundingto ClaroVTR through convertible notes to support the execution of its business plan and for the refinancing of certain bank debt existing at the formation of the JV. Liberty Latin America had the right to catch-up its respective portion of such funding commitments by the middle of this year for ClaroVTR to continue as a 50:50 joint venture.
On June 23, 2024, Liberty Latin America informed América Móvil it would not be exercising such right. As a result, AMX will convert its outstanding notes held in ClaroVTR into equity resulting (subject to adjustments at closing) in a controlling interest of approximately 91%. LLA will continue to own approximately 9% of the equity of ClaroVTR (subject to final adjustments at closing).
