Telefónica Móviles’ acquisition of BellSouth Peru
Morgan Stanley advised Telefónica Móviles
In October 2004, Telefónica Móviles (TEM) announced it had completed the acquisition of BellSouth Peru, for an enterprise value of $210m. This acquisition, in addition to similar buyouts in Argentina and Chile, marked the conclusion of the second stage of purchases agreed between TEM’s parent company and BellSouth to acquire the latter’s cellular assets in Latin America, comprising 12.5 million customers in 10 countries. TEM acquired 97.43% of BellSouth Peru with the remaining 2.57% still publicly listed.
The combination of the existing operations of Telefónica Móviles Peru and BellSouth Peru positions TEM as market leader in the country with more than 2.7 million customers, roughly 74% market share. Besides creating the leading mobile telecoms operator in Peru, the deal also permits realisation of significant synergies with TEM’s existing operations.
