Company: LILA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001712184-25-000179
Chunk: 5

Company: Liberty Latin America Ltd.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 5
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 authorizations. 

On September 11, 2025, SUTEL, the Costa Rican telecommunications regulator, issued a resolution prohibiting the transaction, determining that the potential negative effects could not be mitigated by the commitments proposed by the parties, nor by any additional conditions that SUTEL could establish. This outcome was unexpected, as the parties had worked closely with SUTEL’s staff throughout the review process to design remedies that they strongly believe addressed any potential competition concerns identified by the regulator. On October 22, 2025, the parties filed an appeal seeking to overturn SUTEL’s decision and requesting a new assessment of the proposed remedies. A response from SUTEL is expected by mid-November 2025.

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During August 2024, we also entered into an agreement with the noncontrolling interest owner of Liberty Costa Rica where we agreed to acquire on January 30, 2026 shares representing 8.5% of the equity of Liberty Costa Rica for aggregate cash consideration of approximately $84 million, comprising CRC 22 billion ($44 million) and $40 million, with 62.5% of the purchase price due upon closing and the remaining 37.5% due on January 29, 2027. 

LPR Acquisition

During November 2023, we entered into an agreement with EchoStar to acquire EchoStar’s prepaid business and spectrum assets in Puerto Rico and USVI in exchange for cash and international roaming credits. The aggregate cash consideration of $256 million is due in four annual installments. We paid $95 million on the closing date, September 3, 2024, $72 million is currently due, and $45 million and $40 million will become due on September 3 of 2026 and 2027, respectively.

Material Changes in Results of Operations

The comparability of our operating results during the three and nine months ended September 30, 2025 and 2024 is affected by an acquisition and FX. As we use the term, “organic” changes exclude FX and the impact of an acquisition. 

In the following discussion, we quantify the estimated impacts on the operating results of the periods under comparison that are attributable to the LPR Acquisition, which closed on September 3, 2024. With respect to acquisitions, organic changes exclude the operating results of an acquired entity during the first 12 months following the date of acquisition. 

Changes in foreign currency exchange rates may have a significant impact