The company that owns VTR, Liberty Latin America, a cable and wireless service provider in South America and the Caribbean, approached Millicom International Cellular SA with a takeover bid, sources familiar with the matter said.
The agreement would create one of the largest telecommunications operators in Latin America, giving the resulting company a greater ability to compete with some of the region's major players, such as América Móvil, Telefónica SA and AT & T Inc.
Liberty Latin America, which has the backing of tycoon John Malone, has been talking to Millicom, a mobile and cable operator in Latin America and Africa for weeks, but there is no certainty that an agreement will be reached, one said. . the sources.
The company is seeking bank loans and financing from an investment firm, such as a private equity fund, for the cash portion of its offer, another source said.
The sources asked not to be identified because the subject is confidential. Liberty Latin America and Millicom did not respond to requests for comments.
Millicom offers mobile services to approximately 51 million customers under the Tigo brand in nine Latin American countries. At the end of December, the Swedish investment company Kinnevik AB owned 37.2% of Millicom. The company cut its portfolio of wireless towers around the world.
Liberty Latin America, which operates in more than 20 countries in Latin America and the Caribbean, has split from Malone-owned Liberty Global Plc last year. Its brands include VTR, Flow, Liberty, More Mobile, BTC and Cabletica.