PANAMA CITY (Reuters) – Mobile phone operator Digicel said Wednesday it plans to wind down operations in Panama after approval of a merger between competitors Cable & Wireless Panama (CWP) and Sinclair.
The merger, in which the Panama Canal will have 49% shares and 56% market share, “makes an effective end to the competition among smaller players in the telecom market,” Digicel said in a statement.
Digicel said it had applied for voluntary liquidation, though it had not succeeded in a variety of projects after CWP announced in late 2021 that it would trade Sinclair-America Movil operations subsidiary in Panama.
These projects included establishing an investment bank for commercial and strategic financial sectors, a large engagement with the authorities regarding the proposed merger, and proposals for customers to migrate to another operating sector that did not exist in the future.
With Digicel going out on the market, it would be the only one telecomes provider, operating in addition to the Millicom-owned Tigo combined entity CWP-Sinclair in Panama.
“We are not sustainable to continue investing in the market,” Digicel chairman Denis O’Brien said in a statement, branding the company $86 million for the license to operate in 2008 and another $575 million in amendments since.
Digicel issued a statement saying it does not expect to have a material taint in its financial situation.
(story by Elida Moreno in Panama City; writing by Kylie Madry; Edwina Gibbs)
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