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PANAMA City, April 6 (Reuters) – Mobile cell phone operator Digicel stated Wednesday it plans to wind down functions in Panama adhering to the government’s acceptance of a merger involving competition Cable & Wireless Panama (CWP) and Claro.
The merger, in which the Panamanian govt will be a 49% shareholder and provides the businesses 56% of the market, “proficiently spells the stop of competitors in the telecoms sector for more compact players,” Digicel claimed in a statement.
Digicel said it was making use of for voluntary liquidation, possessing not succeeded in different initiatives just after CWP declared in late 2021 it would invest in America Movil (AMXL.MX) subsidiary Claro’s functions in Panama.
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These initiatives provided appointing an financial commitment bank to market the company to economic and strategic parties, extensive engagement with authorities about the prepared merger and proposals to migrate shoppers to yet another operator which had been not taken ahead.
With Digicel exiting the sector, there would be only one particular telecom service provider, Millicom-owned (MICC.F) Tigo, working in addition to the mixed CWP-Claro entity in Panama.
“It truly is not sustainable for us to continue on investing in the market,” Digicel chairman Denis O’Brien mentioned in the statement, noting the organization paid out out $86 million for its functioning license in 2008 and another $575 million on advancements given that.
Digicel stated it did not assume the announcement to have a materials effect on its monetary situation.
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Reporting by Elida Moreno in Panama City Composing by Kylie Madry Editing by Edwina Gibbs
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