Posse Herrera Ruiz has advised Colombia Móvil S.A. E.S.P. (Tigo Colombia) in the negotiation of an asset purchase agreement with KKR, whereby a local SPV incorporated by KKR would acquire more than 1000 telecommunication towers from Tigo.

Once certain conditions precedent are met, KKR will acquire batches of telecom towers which, in turn, will be leased back to Tigo who will be the anchor tenant of those sites. The transaction also entails a temporary period following each closing during which Tigo will operate the assets on behalf of KKR while KKR properly established its business in Colombia.

The transaction allows Tigo to concentrate its core business in the operation of telecom services (as opposed to operation of asset infrastructure) and grants a cash influx to pursue new ventures in the 5G network and spectrum, recently auctioned by the Colombian Government.

The deal implied complex M&A negotiations, antitrust filings, non-compete intricacies, and a deep due diligence and indemnities package related to the urbanistic and permitting specifications of each asset, and the regulation of the relationship with local landowners where the assets are located (traditionally, real estate is not owned by the telecom operator).