Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nyse  >  AT&T    T


News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

AT&T : to Sell Puerto Rico Business--2nd Update

share with twitter share with LinkedIn share with facebook
share via e-mail
10/09/2019 | 10:25am EST

By Shalini Ramachandran and Drew FitzGerald

AT&T Inc. has agreed to sell its Puerto Rican and U.S. Virgin Islands businesses to Liberty Latin America Ltd. for $1.95 billion in cash, allowing the telecommunications giant to shave its debt load and move closer to repurchasing shares.

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 will be transferred to Liberty Latin America.

The two companies said they expect the deal to close within six to nine months. The Wall Street Journal earlier Wednesday reported the companies had agreed to a deal.

Puerto Rico accounts for a small sliver of AT&T's domestic operations, but shedding the unit will help it work down a large debt load accumulated through its $80 billion-plus acquisition of Time Warner last year.

The deal signals progress on AT&T's goal of selling noncore assets, something activist investor Elliott Management Corp., which recently disclosed a stake in the company, is also pushing. AT&T has also sold its stake in streaming service Hulu.

On Wednesday, AT&T said the deal brings to more than $11 billion the amount of money it will have raised from asset sales this year. The company said its expects to return to repurchasing shares in the fourth quarter, along with debt reduction.

Liberty is already the biggest 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 have told investors they would like to expand in the region through disciplined mergers and acquisitions.

Liberty plans to finance the cash deal in large part by raising debt against the combined Puerto Rican operation, one person familiar with the matter said.

AT&T originally entered Puerto Rico in 2009 after it acquired 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 slowed negotiations. Thousands of residents of the commonwealth spend several months out of the year on the U.S. mainland, for example, which made difficult the job of counting subscribers, according to another person familiar with the matter. The island also was heavily damaged in 2017 by Hurricane Maria.

Liberty Latin America is a publicly traded telecom and cable provider that operates 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 shalini.ramachandran@wsj.com and Drew FitzGerald at andrew.fitzgerald@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
AT&T 0.03% 38.2 Delayed Quote.33.81%
LIBERTY LATIN AMERICA 0.41% 17.15 Delayed Quote.17.96%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on AT&T
03:23pAT&T : State AGs look to head off T-Mobile-Sprint deal in court
12/05AT&T INC. : Other Events, Financial Statements and Exhibits (form 8-K)
12/05AT&T : to Webcast Keynote by Jeff McElfresh at Barclays Conference
12/05AT&T : to Webcast Keynote by Jeff McElfresh at Barclays Conference on December 1..
12/05AT&T INC. : Announces Proposed Offering of Series a Preferred Stock
12/03AT&T : TitleAT&T CFO John Stephens Provides Update to Shareholders
12/03AT&T : CFO John Stephens Provides Update to Shareholders
12/03AT&T : Report links Giuliani with top Republican on intel panel
12/03AT&T : FirstNet Reaches Over 1 Million Connections, Launches Blimp
12/03AT&T : to Webcast Keynote by Randall Stephenson at UBS Conference on December 10
More news
Financials (USD)
Sales 2019 182 B
EBIT 2019 30 454 M
Net income 2019 16 514 M
Debt 2019 154 B
Yield 2019 5,35%
P/E ratio 2019 17,0x
P/E ratio 2020 13,4x
EV / Sales2019 2,39x
EV / Sales2020 2,34x
Capitalization 279 B
Chart AT&T
Duration : Period :
AT&T Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AT&T
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 29
Average target price 39,67  $
Last Close Price 38,20  $
Spread / Highest target 25,7%
Spread / Average Target 3,84%
Spread / Lowest Target -47,6%
EPS Revisions
Randall L. Stephenson Chairman & Chief Executive Officer
John T. Stankey President & Chief Operating Officer
John J. Stephens Senior EVP, Chief Financial & Accounting Officer
Laura D'Andrea Tyson Independent Director
Matthew K. Rose Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
AT&T33.81%278 978
NTT DOCOMO, INC.23.84%89 680
T-MOBILE US20.96%65 828