Liberty Global to create Latin American subsidiary
Juan Fernandez Gonzalez | 17-01-2014
Liberty Global aims to strengthen its business in Latin America by creating a unit in the region to independently manage its telecoms operations in Chile and Puerto Rico. The goal is to acquire cable and broadband capacity in order to improve its TV everywhere business.
According to Chilean newspaper Diario Financiero, in addition to the Latin American subsidiary, Liberty Global will launch a bond issue for $1,400 million through its Chilean business VTR to create a financial structure which is completely independent from the European unit to allow for eventual acquisitions.
Liberty Global's Latin American priority will initially be business in Central America. According to Diario Financiero, the company is about to close a deal in the Dominican Republic. "Chile's VTR and Puerto Rico business are strong operations, growing more than our European options," explained Mike Fires, CEO, Liberty Global.
VTR aims to reinforce its multiscreen presence and launch a TV everywhere service. However, the company has competition before it's even started, as Claro Chile is currently offer a video streaming service and Telefónica launched the video-on-demand (VOD) Movistar Play few months ago.