BT sells selected ops and infrastructure in 16 LatAm countries

News

The operators say its new, simplified setup will sharpen its focus on serving multinational customers in the region.

BT said it has agreed to sell selected domestic operations and infrastructure in 16 countries in Latin America to CIH Telecommunications Americas, an affiliate of CIH Technology Holdings.

They have not disclosed the terms of the purchase.

The transaction is subject to regulatory approval and is expected to complete during this calendar year.

The deal is part of BT’s ongoing attempts to turn round the fortunes of its Global unit, which has been in the doldrums since the Italian accounting scandal came to light in 2016 and from which BT Group’s share price has never recovered.

How it will work

BT said in a statement it will retain a strong presence in the region after the sale, “delivering next-generation networking, cloud and security services to multinational customers across 21 countries”.

The operator said it will deliver continuity and growth opportunities for customers and employees in the region.

BT and CIH have also entered into wholesale and reseller agreements, under which CIH will act as a regional channel for BT’s products and services and continue to supply domestic connectivity services to BT.

Assets and operations covered by the transaction produced revenue of £110 million for BT in fiscal year 2018-2019, and include two owned fibre networks with total length of 650km, 2000km of leased fibre lines, four data centres and five teleports.

The divested business has headquarters in São Paulo, Brazil.

Key milestone

Bas Burger, CEO of Global, BT, said, “Today’s announcement is a key milestone in the execution of our strategy to become a more agile and focused business. It comes at a particularly challenging time for the global economy.

"As such, it is a sign of our determination to keep the business moving forward and continue connecting communities, businesses and governments. I am pleased to begin a new chapter in the region with CIH, providing continuity for our people and our customers.”

George Kappaz, CIH’s Chairman, commented, “We are very excited to be re-entering global telecommunications after having successfully focused on the technology sector over a number of years.

"We have considerable experience in the region and the sector, and greatly look forward to growing the business and providing the highest level of service to all customers in the region, including BT. The acquired business fits very well with our strategy and existing global portfolio.”