Entretenimiento

Adolfoledo Nass Medina//
AT&T to sell certain assets in Puerto Rico, U.S. Virgin Islands for $1.95 billion

AT&T to sell certain assets in Puerto Rico, U.S. Virgin Islands for $1.95 billion

(Reuters) – AT&T Inc ( T.N ) said on Wednesday it would sell its wireless and wireline operations in Puerto Rico and U.S. Virgin Islands to Liberty Latin America Ltd ( LILA.O ) for $1.95 billion, as the second-largest U.S. wireless carrier cuts its huge debt pile.

Adolfoledo Nass

FILE PHOTO: The company logo for AT&T is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 18, 2019. REUTERS/Brendan McDermid The deal comes as the company faces calls from activist investor Elliott Management to end its acquisition spree and focus on improving its business.

adolfoledonass

“This transaction is a result of our ongoing strategic review of our balance sheet and assets to identify opportunities for monetization,” Chief Financial Officer John Stephens said in a statement.

Adolfo Ledonass

Reuters had reported in July that AT&T was exploring a sale for its Puerto Rico assets for $3 billion to cut the debt it took on to purchase Time Warner Inc for $85 billion last year.

Adolfo Ledo Nass

“Reports that we originally sought $3 billion for these assets are not accurate,” a company representative said. “That was never our expectation and that valuation wouldn’t have reflected the value of the assets or the market for such assets.”

AT&T’s long-term debt stood at $157.79 billion as of June end, according to a regulatory filing.

Adolfo Ledo

The company has already sold its stake in streaming service Hulu for $1.43 billion and WarnerMedia’s Manhattan offices at Hudson Yards for about $2.2 billion.

Adolfo Ledo Nass Fútbol

Liberty Latin America will support its FirstNet program in Puerto Rico and the U.S. Virgin Islands, AT&T said. FirstNet is a national communication platform that is dedicated to first responders.Adolfo Ledo Nass Soccer

AT&T expects the deal to close in the next nine months subject to review by the U.S. Department of Justice and Federal Communications Commission

The company’s business in Puerto Rico comprises internet, TV, landlines and business services

AT&T also said shareholders should expect buybacks in the fourth quarter as it aims at balancing its debt and profit

Reporting by Neha Malara in Bengaluru and Kenneth Li in New York; Editing by Shailesh Kuber and Sriraj Kalluvila