ATLANTA-After first entering the Colombian wireless market just last month and in line with its aggressive Latin American expansion strategy, BellSouth Corp. announced it increased its stake in operator Celumovil. As part of the deal, Celumovil will purchase Colombian wireless carrier Cocelco for $370 million.
BellSouth acquired the 16.55 percent of Celumovil shares from AT&T Wireless Services Inc. and Chase Manhattan International Finance Ltd., giving the U.S. company a 50.35-percent stake in Celumovil. The value of the transaction was not disclosed.
BellSouth acquired 33.8 percent of the Colombian carrier from Valores Bavaria S.A. for $295 million in May. The company has closed on the Bavaria and Chase shares, and the AT&T Wireless transaction is expected to close within the next few days, BellSouth said.
“With today’s announcements, BellSouth gains a presence in South America’s second-most populous country and cements a strong partnership with Valores Bavaria S.A.,” said Charles C. Miller III, president of BellSouth International.
Cocelco had net revenues of $84.8 million in 1999 and has 200,000 subscribers. The Cocelco purchase is expected to close later this year, pending regulatory approval in Colombia.
The two Colombian carriers cover a combined 41 million POPs through operations in the eastern, western and Atlantic license regions of Colombia. The country has a 5-percent wireless penetration, offering significant growth opportunities, said BellSouth.
