• Leading global investment firm KKR agrees to acquire a majority interest in PangeaCo and the fiber optic networks of Telefónica del Perú and Entel Perú
• KKR plans approximately US$200 million of additional investment to accelerate expansion of ultra-fast digital infrastructure to more than double the network to at least 5.2 million homes passed across Perú by the end of 2026
• KKR will own a 54% controlling interest in Perú’s first independent open access wholesale fiber optic network, with 36% owned by Telefónica Hispanoamérica and 10% owned by Entel Perú

KKR, Telefónica Hispanoamérica, and Entel today announced agreements under which KKR will acquire a majority interest in PangeaCo and the existing fiber optic networks of Telefónica del Perú and Entel Perú to build Perú’s first nationwide open access wholesale fiber optics company with the mission to bring greater access to fiber optics connectivity across the country. The transaction will combine the existing fiber optic networks of PangeaCo, Telefónica del Perú, and Entel Perú into an independent company controlled by KKR. The newly formed network will be open access, allowing usage to all internet service providers for the first time. KKR plans to make approximately US$200 million of additional investment to more than double the ultra-fast fiber network from more than 2 million homes passed today to reach 5.2 million homes passed across 86 provinces by the end of 2026.

Under the terms of the agreement, KKR will acquire a controlling interest in PangeaCo, which will subsequently acquire the existing fiber optic networks of Telefónica del Perú and Entel Perú. Through the combination of these networks, KKR will establish ON*NET Fibra de Perú as the new name for the platform which will independently build and operate the nation’s largest fiber optic network with world-class quality standards. KKR will own a 54% interest in ON*NET Fibra de Perú alongside Telefónica Hispanoamérica, which will own 36%, and Entel Perú, which will own 10%.

The entire ON*NET Fibra de Perú fiber optic network will be open to use by all internet service providers, increasing competition in the wholesale market. Telefónica del Perú and Entel Perú will be anchor tenants on the expanded open access network, enabling both providers to reach a greater number of customers with ultra-high-speed offerings. The transaction does not impact the services provided by existing customers of PangeaCo, Telefónica del Perú or Entel Perú. Upon closing of the transaction, customers will benefit from the scale of the larger network.

In Perú, approximately 88% of households have mobile or fixed internet service, but less than 35% have access to high-speed fiber optic networks.¹ KKR, as the controlling shareholder, intends for ON*NET Fibra de Perú to more than double the households reached by fiber optic network, including reaching municipal areas outside of Lima as well as middle- and low-income households. This transaction demonstrates continued investor confidence in Peruvian infrastructure and the commitment of the companies to contribute to the sustainable development of the digital connectivity in the country.

Today’s announcement builds on KKR’s success in expanding nationwide connectivity and increasing competition in Chile and Colombia. ON*NET Fibra de Chile has expanded access from 2.4 million homes passed to 3.7 million homes passed since KKR signed the acquisition in February 2021 and ON*NET Fibra de Colombia has increased homes passed from 1.2 million to 2.4 million since signing in July 2021.² Both companies have attracted multiple internet service providers to utilize their open access networks.

KKR is making the investment through its KKR Global Infrastructure Investors III fund and plans to provide operational support to ON*NET Fibra de Perú through NEXO LatAm, a digital infrastructure business supporting KKR’s Infrastructure strategy across Latin America. KKR and NEXO LatAm have significant experience supporting the successful expansion of open access fiber optic investments.

The transaction is subject to regulatory approvals, including the approval of the Peruvian antitrust agency (INDECOPI).

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About Telefónica Hispanoamérica

Telefónica is one of the largest telecommunications service providers in Spanish America. The company operates under the Movistar trademark and offers fixed broadband connectivity -with FTTH solutions- and mobile services with 4G and 5G networks (the latter in Chile and Mexico), as well as a wide range of digital services for more than 110 million residential and business customers across the region. Telefónica Hispam offers its services in: Mexico, Colombia, Venezuela, Perú, Ecuador, Uruguay, Chile and Argentina.

About Entel

With more than 58 years of experience, Entel is a leader in technology and telecommunications with operations in Chile and Perú, where it has more than 20 million mobile subscribers. The company offers mobile and fixed connectivity services, as well as a wide range of digital and IT services in the consumer (B2C), business and large corporate (B2B) segments. In both countries it also provides wholesale and call center services. For all its services, it offers simple and efficient experiences, backed by a robust, state-of-the-art infrastructure and a solid brand image and customer service.

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1</sup> Sources: OSIPTEL “Residential Survey of Telecommunications Services” (December 2021) and Omdia Fiber Development Index 2022 (October 2022).

² Figures as of December 2022.

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