Peru was at the center of Latin America’s
M&A markets in March and April, amid a quieter than
expected start to the year. Latin America-targeted M&A
volume was $18.2 billion in the first three months of the year,
the lowest quarterly volume since 2005 and down 41% from the
same period in 2012 – even though the global total was
Growth was an important consideration for
Chile’s Empresa Nacional de Telecomunicaciones
(Entel), when it paid $400 million cash for
Nextel’s Peruvian operations. Entel plans to
reserve funds for the acquisition partly by reducing its
dividend payout to 50% percent of profit, compared to levels of
80% in the past. That strategy, along with a perception that
the buyer paid a high price, disappointed markets. The growth
possibilities are attractive, but Entel...
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