Entel, the second-largest mobile telephone operator in Chile, has signed a $200 million loan with Bank of Tokyo-Mitsubishi UFJ Ltd. and a unit of Bank of Nova Scotia.
Empresa Nacional de Telecomunicaciones SA will use the loan for the early payment of $200 million of an outstanding $600 million loan that is due in June 2012. The transaction will be used to improve Entel’s liquidity position.
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On Nov. 28, Entel and GTD Group confirmed an agreement to merge their telecommunications operations, dissolving the latter in Entel.
Entel has said it will merge with local data, fixed-line, cable TV and Internet provider Grupo GTD to better compete against main rivals Movistar, the local unit of Spain’s Telefonica Moviles SA, and Claro, owned by Mexico’s América Móvil SAB.
That agreement was signed between Entel’s controller, Almendral Telecomunicaciones SA, and GTD’s controller, Inmobiliaria e Inversiones El Coigüe. If shareholders approve the deal, GTD Manquehue shareholders will hold a 9.8% stake in Entel, while Almendral Telecomunicaciones will keep 49.4% of Entel. The deal may take several months to complete.
