Entel’s planned sale of its Peruvian operation would add Peru to Millicom’s Latin American footprint while shedding a unit that Entel says accounts for 36% of its group revenue, in a $1.714 billion enterprise-value deal.
Entel said the agreement signed Nov. 13 covers all shares in Entel Perú S.A. and Americatel Perú S.A. The Chilean carrier values the transaction at $1.714 billion in enterprise value. Millicom said that figure includes lease liabilities.
Entel Perú alone accounts for 36% of Entel group revenue and has just over 10 million customers, according to the company. Entel said the business ranked second in Peru by mobile-service revenue share in 2023.
Entel expects the sale to generate an extraordinary net gain of about CLP 98 billion. It plans to propose a dividend of CLP 2,100 per share from accumulated earnings if the transaction closes. Entel said the proceeds would support its finances and position in Chile, while allowing it to focus on operations it believes offer stronger opportunities.
Millicom expects to combine financing arranged locally with cash it already holds. It plans to pay 65% of the purchase price at closing, another 10% 12 months later and the remaining 25% after 18 months.
The companies used different EBITDA measures, or earnings before interest, taxes, depreciation and amortization, to describe the valuation. Millicom put the enterprise value at five times estimated 2026 EBITDA, before synergies and integration costs. Entel cited 5.34 times EBITDA for the 12 months through June 2026; the companies did not reconcile the figures.
Millicom said the deal would bring its operating footprint to 13 markets. Millicom expects the deal to increase equity free cash flow in the first year after closing and projects leverage of about 2.5 times at the end of 2026, including the acquisition.
Entel shareholders are scheduled to consider the sale at an extraordinary meeting Nov. 30. Millicom expects to complete the transaction in early December, subject to customary closing conditions.
