Stonepeak, an alternative investment firm, has signed a definitive agreement with Lumen to acquire its Latin American business for $2.7 billion.
Under the terms of the purchase agreement, Lumen will divest its Latin American business, which will operate as an independent, U.S. headquartered portfolio company of Stonepeak. The current Latin American leadership team and organization will remain in place, led by Hector Alonso, Lumen’s president for the region. Lumen will also retain a strategic relationship with the New LATAM Company and continue to serve joint customers in the region.
“This transaction unlocks value for our shareholders while allowing us to maintain our global presence through our strategic relationship with the New LATAM Company,” said Lumen President and CEO Jeff Storey. “This transaction allows Lumen to focus investments in key areas of the business to drive future growth while providing flexibility for our capital allocation strategy.”
“Lumen’s Latin American business is a market leader with a strong footprint and exciting potential for expansion,” said Brian McMullen, Stonepeak senior managing director. “Stonepeak has been an early and active investor in digital infrastructure globally and we are looking forward to applying our experience and additional capital to Lumen’s Latin American business.”
“Stonepeak has made it very clear that they are committed to enterprises that operate in Latin America. This transaction provides the New LATAM Company with more autonomy to serve its customers and the enhanced ability to react to and invest in changing market conditions in the Latin America region,” said Alonso. “These customers will experience the same world-class network and services they have come to expect from a leadership team focused on their success.”
“We look forward to partnering with Hector and his team to expand the network across the entire region and position the platform for continued long-term growth,” said Andrew Thomas, Stonepeak managing director.
AustralianSuper, Australia’s largest pension fund, is investing alongside Stonepeak in the transaction.
BofA Securities, Morgan Stanley & Co. LLC, Citi and Goldman Sachs are acting as financial advisors to Lumen in connection with the transaction. Jones Walker LLP is serving as legal advisor.