Enel plans takeover of LATAM fibre operator Ufinet 

Italian electric utility company Enel is reportedly planning on taking over South American fibre optic network operator Ufinet.

Enel already owns 21% of the LATAM operator, but has an option to pay up to €2.1 billion to buy the 79% owned by private equity firm Cinven.

A decision has not been made on how a deal could be structured, but Reuters reports that Enel has decided to exercise its option to take full control of Ufinet.

Stakes are high for Enel, with its Enel X International unit losing its right of joint operational control of Ufinet if it does not exercise its buy option by the end of 2021.

Such a deal would emulate Enel’s investment in Italian fibre grid operator Open Fiber where it has agreed to sell most of its 50% stake to Macquarie. Should the Ufinet deal go through, Enel would seek a buyer for up to 49% of the company and use those funds to finance further expansion. 

Full grid fibre operator Ufinet manages more than 75,000km of optical fibre across Latin America, Mexico and the US. Its network covers more than 2,000 towns and cities