Business

Lumen Technologies Inc (NYSE: LUMN) Agrees to a $2.7 Billion Deal to Sell its Latin American Business to Stonepeak

The deal between Lumen Technologies Inc (NYSE: LUMN) and Stonepeak went through, marking a significant expansion in the business activities of the leading alternative investment firm that focuses on infrastructure. Stonepeak has made significant steps forward, and currently, it manages assets worth $37 billion. Lumen sells its Latin American business for about $2.7 billion.

The transaction and its impact

The pronouncement about the two inking the deal impacted Lumen’s stock as having climbed by 2.3% to settle at $12.92 in the closing session. 

Stonepeak has its headquarters in New York. On the other hand, Lumen runs its operations from Monroe, LA. It happens to be a communications service provider that has about 450,000 route fiber miles. 

The company has managed to expand its business footprint significantly.  It offers its services to customers spread out across about 60 countries. In addition, it continues making more investments towards the provision of more enhanced integrated services and solutions.

The essence of the transaction

Lumen is quite impressed with the latest transaction, outlining that it will unlock value for its shareholders. It also projects that it will be successful in upholding its worldwide presence. It is a transaction that also means well for the company in increasing its investments in major growth areas. In addition, the company hopes to settle its debt burden as part of the many plans it had laid down before inking the deal in question.

Australia’s largest pension fund AustralianSuper happens to be the other investor in the deal. The parties to the deal look forward to the regulatory approval, which is a necessary step.

It is crucial to outline that the new LATAM Company won’t scrap off the current Latin American leadership team and organization. Lumen says it will continue offering its services in EMEA, North America, and APAC regions. Lumen’s president for the region Hector Alonso is one of the big names maintained in the new company.

Leave a Comment

Your email address will not be published.

*