Lumen flogs its Latin American business for $2.7 billion

US B2B comms company has delivered on its promise to dispose of non-core assets by selling its LatAm operations to hedge fund Stonepeak.

A couple of weeks ago Lumen said it wanted to raise money by refocusing on its core business, both in terms of market segment and geography. Disposing of its LatAm business certainly ticks the latter box but what it’s selling does seem to include a fair bit of business comms. Of course all this talk core competence could just be a cover for needing to raise some cash and retrofitting the rationale for doing so.

“This transaction unlocks value for our shareholders while allowing us to maintain our global presence through our strategic relationship with the New LATAM Company,” said Lumen President and CEO Jeff Storey. “This transaction allows Lumen to focus investments in key areas of the business to drive future growth while providing flexibility for our capital allocation strategy.”

“Lumen’s Latin American business is a market leader with a strong footprint and exciting potential for expansion,” said Brian McMullen, Stonepeak Senior Managing Director. “Stonepeak has been an early and active investor in digital infrastructure globally and we are looking forward to applying our experience and additional capital to Lumen’s Latin American business.”

The company will continue to be run by Hector Alonso, Lumen’s president for the region, and Lumen will maintain some kind of strategic relationship with it. “This transaction provides the New LATAM Company with more autonomy to serve its customers and the enhanced ability to react to and invest in changing market conditions in the Latin America region,” said Alonso. “These customers will experience the same world-class network and services they have come to expect from a leadership team focused on their success.”