SUR Holdings has acquired debt-ridden Colombian telco WOM.

The deal provides a lifeline for Colombia's fourth-largest mobile network operator, which filed for bankruptcy in April of last year, weeks after its Chilean counterpart.

The country's ICT minister Mauricio Lizcano said the investment from SUR Holdings, which is made up of investors from the US and UK, has "saved" WOM, reported BNAmericas.

Financial terms of the deal were not disclosed.

"The arrival of new investors is great news because it shows the confidence that they continue to have in the country, to invest new and fresh resources in Colombia, managing to maintain a competitive market, with several players, which benefits users and customers," said Lizcano.

WOM was only launched as Colombia's fourth mobile network operator in 2020, backed by London-based investment fund Novator Partners.

The company said at the time that it would invest more than $1 billion into infrastructure projects in the country in the following five years.

Novator Partners hasn't commented publicly on the announcement this week, while financial details around SUR Holdings' investment have not been disclosed.

"With this milestone, our future is bright. We are committed to closing the digital divide across the country and excited to continue strengthening our position in the market. This acquisition allows us to successfully navigate the opportunities and challenges ahead," added Ramiro Lafarga, CEO of WOM Colombia."

The minister said that WOM has a three-year grace period on spectrum payments, which will be paid off with interest from 2029. However, payments for the deployment and auction of 5G remain as normal.

At present, WOM serves around seven million mobile subscribers.