Digicel plans to liquidate Panama business after rivals’ merger approved
By Elida Moreno
PANAMA CITY (Reuters) – Cell phone operator Digicel mentioned Wednesday it plans to wind down operations in Panama following the federal government’s approval of a merger between opponents Cable & Wi-fi Panama (CWP) and Claro.
The merger, wherein the Panamanian authorities can be a 49% shareholder and provides the businesses 56% of the market, “successfully spells the top of competitors within the telecoms marketplace for smaller gamers,” Digicel mentioned in an announcement.
Digicel mentioned it was making use of for voluntary liquidation, having not succeeded in varied initiatives after CWP introduced in late 2021 it will buy America Movil subsidiary Claro’s operations in Panama.
These initiatives included appointing an funding financial institution to market the enterprise to monetary and strategic events, in depth engagement with authorities concerning the deliberate merger and proposals emigrate prospects to a different operator which weren’t taken ahead.
With Digicel exiting the market, there could be just one telecom supplier, Millicom-owned Tigo, working along with the mixed CWP-Claro entity in Panama.
“It isn’t sustainable for us to proceed investing out there,” Digicel chairman Denis O’Brien mentioned within the assertion, noting the corporate paid out $86 million for its working license in 2008 and one other $575 million on enhancements since.
Digicel mentioned it didn’t anticipate the announcement to have a fabric affect on its monetary situation.
(Reporting by Elida Moreno in Panama Metropolis; Writing by Kylie Madry; Enhancing by Edwina Gibbs)
