RTTNews | Jul 26, 2021 07:38AM EDT

07:37 Monday, July 26, 2021 (RTTNews.com) - Lumen Technologies (LUMN) and Stonepeak announced Monday the signing of a definitive agreement for Lumen to sell its Latin American business to alternative investment firm Stonepeak for $2.7 billion.

Under the terms of the purchase agreement, Lumen will divest its Latin American business, which will operate as an independent, U.S. headquartered portfolio company of Stonepeak as New LATAM Company.

The current Latin American leadership team and organization will remain in place, led by Hector Alonso, Lumen's president for the region. Lumen will also retain a strategic relationship with the New LATAM Company and continue to serve joint customers in the region.

The divestiture provides Lumens with additional capital to enable Lumen to accelerate investments in key growth areas. It will also enable greater flexibility on capital allocation, allowing for debt reduction and the continued evaluation of share repurchases.

Lumen and Stonepeak expect the transaction to close in the first half of 2022, upon receipt of all regulatory approvals in the U.S. and certain countries where the New LATAM Company operates, as well as the satisfaction of other customary conditions.

AustralianSuper, Australia's largest pension fund, is investing alongside Stonepeak in the transaction.

Read the original article on RTTNews ( https://www.rttnews.com/3211790/lumen-to-sell-latam-business-to-stonepeak-for-2-7-bln-quick-facts.aspx)

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