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AT & T to Sell Its Puerto Rico and U.S. Virgin Islands Operations

AT & T Inc.

       has agreed to sell its Puerto Rican and U.S. Patents Virgin Islands businesses to

            Liberty Latin America Ltd.


AT & T's operation in Puerto Rico provides cellular, landline and internet connections. It had 1.1 million wireless subscribers. As part of the deal, about 1,300 AT & T employees want to be transferred to Liberty Latin America.

The Wall Street Journal earlier

Puerto Rico accounts for a small-scale slippage of AT & T's domestic operations, but shed the unit to help it settle a large debt load accumulated through its $ 80 billion-plus Acquisition of Time Warner last year.

Elliott Management Corp., which is now pushing a stake in the company, is now pushing the AT & T's goal of selling non-core assets, something activist investor. AT & T has sold its stake in Hulu streaming service.

On Wednesday, AT & T said the deal will bring more than $ 1

1 billion.

Liberty is already the largest pay-TV and broadband provider on the island. Cable tycoon

      John Malone,

       who holds a 25.5% voting stake in Liberty Latin America and Liberty Latin America CEO

      Balan Nair

       they have like to expand in the region through disciplined mergers and acquisitions.

AT & T originally entered Puerto Rico in 2009 after acquiring Centennial Communications Corp., a rural telecom company with a large share of revenue from the island, for under $ 1 billion.

The complexity of the Puerto Rican unit's slowed negotiations. Thousands of residents of the Commonwealth spend several months out of the year on the U.S. mainland, for example, which made the job difficult to count. The island also claims to be heavily damaged in 2017 by Hurricane Maria.

Liberty Latin America is a publicly traded telecom and cable operator operating in Chile, Puerto Rico, the Caribbean and other countries in Latin America. The company spun out last year from

            Liberty Global

       the international cable operator headed by Mr. Malone. The Latin America operator currently has a market value of about $ 3 billion.

Write to Shalini Ramachandran at [email protected] and Drew FitzGerald at [email protected]

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