Chilean telecommunications provider Entel (Santiago: ENTEL) has hired an investment bank to sell its Peruvian subsidiary, attracting acquisition interest from Luxembourg-based Millicom (NASDAQ: TIGO) as regional market consolidation accelerates.
df.cl reported that the controlling shareholder Almendral (Santiago: ALMENDRAL) initiated the search for operators and investors eyeing a foothold in the Peruvian market. Entel entered Peru in 2013 via the acquisition of Nextel and currently operates as the country’s second-largest mobile provider with 10.5 million customers, according to df.cl.
The divestment announcement arrives while the Peruvian subsidiary posts improving financials after years of heavy capital expenditure and tight margins. df.cl reported that revenue reached US$ 923.8 million between January and September, marking a 7% increase compared to the same period in 2025.
Mobile business revenue grew 6.8% driven by equipment sales climbing 10.9% and service revenue advancing 4.9%, while the fixed segment expanded 5.6%, df.cl noted. EBITDA rose 12.6% to US$ 246.7 million, pushing the margin from 25.4% to 26.7%, and capital expenditures totaled US$ 139 million, which equals 15% of total revenue.
🔑 #SeñalDF | Entel pone a la venta operación de Perú y Millicom está interesado en adquirirlahttps://t.co/wjMPN3Vj8U
Industry sources cited by df.cl point to two primary motivations for the sale during a period of operational growth. Management may be looking to generate cash to fund asset acquisitions in Chile focused on home fiber expansion, or the Matte group—which holds a 32.59% stake in Almendral—is raising capital via dividend withdrawals to fund upcoming investments in CMPC (Santiago: CMPC).
Market reports indicate that initial approaches have already involved Millicom, a company controlled by French businessman Xavier Niel through his vehicle Atlas Investissement, which holds approximately a 46% stake, according to df.cl.
While the company lacks current operations in Peru, it has pursued aggressive expansion across South America by acquiring assets from Telefónica. df.cl reported that the company acquired Movistar Uruguay for US$ 440 million and Movistar Ecuador for US$ 380 million in 2025, alongside advancing control of Movistar Colombia.
df.cl said that Millicom and Niel's holding NNJ finalized the acquisition of Telefónica's Chilean operation for approximately US$ 1,215 million in February, and closed the purchase of Colombian competitor Cotel in April, adding 8.3 million mobile customers.
| Transaction / Asset | Year | Value / Scale |
|---|---|---|
| Movistar Uruguay | 2025 | US$ 440 million |
| Movistar Ecuador | 2025 | US$ 380 million |
During a recent earnings conference call, Chief Financial Officer Bart Vanhaeren addressed the firm’s regional outlook. Peru and Venezuela represent a sound strategy, Vanhaeren told df.cl.
However, the executive ruled out expansion into Venezuela immediately. “[T]ill there are still several capital controls mechanisms in place, especially regarding the dollar, which continues to make it a difficult investment,” Vanhaeren told df.cl.
Brazil was similarly dismissed as too large, characterized by distinct culture, limited synergies, and mature EBITDA margins reaching 50%, df.cl reported. Regarding Mexico, executives noted the market sits outside their immediate priorities, leaving Peru as a primary target among remaining Latin American expansion routes.
