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

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

The deal comes as the company faces calls from activist investor Elliott Management to end its acquisition spree and focus on improving its business.

“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.

Media had reported earlier 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.

“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.

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.

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.

Previous Uber to buy Chile's online grocery provider Corner...Spain's Cellnex to buy Arqiva's telecoms division ... Next