Comunicaciones Celulares S.A. Resolves DOJ Investigation Related to Historical Conduct

Rhea-AI Summary

Millicom (TIGO) announced that its subsidiary Comunicaciones Celulares S.A. (Comcel) reached a deferred prosecution agreement with the U.S. Department of Justice to resolve an investigation into historical improper payments to Guatemalan officials.

Key terms: $60 million fine, $58.2 million forfeiture, a two-year DPA (shorter than the standard three years), no corporate monitor, and required reporting to DOJ on Millicom's compliance program. Millicom cites a 2015 voluntary self-disclosure, full cooperation, remediation actions, and its November 2021 acquisition of Comcel when it gained operational control.

Positive

• Deferred prosecution term reduced to 2 years (vs standard 3)
• DOJ will not require a corporate monitor
• Comcel received a $60M fine at a 50% sentencing-guidelines discount
• Comcel will forfeit $58.2M in benefits from improper payments
• Millicom cited extensive cooperation, remediation, and strengthened compliance
• Millicom acquired full ownership of Comcel in November 2021

Negative

• Immediate cash and forfeiture cost totaling $118.2M
• Ongoing obligation to report to DOJ during the DPA term
• Public record of historical improper payments and a DOJ DPA may reputationally affect investor perception

Insights

Compliance and Legal Risk Analyst

Millicom's Guatemalan unit reached a DOJ DPA with sizable discounts, removing a major legal overhang while incurring defined penalties.

As framed, Comcel will enter a deferred prosecution agreement for $60,000,000 in fines plus approximately $58,200,000 in forfeited benefits, with the DPA lasting two years and no corporate monitor required. The agreement credits the 2015 voluntary self‑reporting, ongoing cooperation, and recent remediation including personnel exits and a strengthened global compliance program.

Key dependencies and risks remain limited and clearly defined: continued reporting to DOJ during the DPA term and successful maintenance of the compliance program. The short DPA term and absence of a monitor reduce ongoing operational burden and signal regulatory leniency. Watch for compliance reporting milestones over the two-year term and any specified remedial deliverables; those items will determine whether the resolution fully closes the matter.

Comunicaciones Celulares S.A. Resolves DOJ Investigation Related to Historical Conduct

Luxembourg, November 10, 2025 – Millicom International Cellular S.A. (“Millicom”) today announced that its subsidiary, Comunicaciones Celulares S.A. (“Comcel”), has reached an agreement with the U.S. Department of Justice (“DOJ”) to resolve an investigation concerning historical improper payments made to Guatemalan government officials.  At the time of the conduct, Comcel operated as a joint venture over which Millicom lacked operational control.

Millicom welcomes today’s agreement, which resolves all issues associated with DOJ’s investigation, first disclosed by Millicom in May 2022. Millicom and its operations are committed to operating with the highest ethical standards.

Millicom’s 2015 voluntary self-disclosure, cooperation, and remediation

Millicom first voluntarily self-reported alleged improper payments involving Comcel to DOJ and Swedish authorities in 2015. Millicom fully cooperated with the authorities and, as previously announced, both DOJ (in 2018) and the Swedish Prosecution Authority (in 2016) closed their investigations without action.

In the wake of that voluntary self-disclosure, Millicom invested heavily in building out and strengthening its global corporate compliance program, which it launched in Guatemala promptly upon acquiring full ownership of the Comcel operation from its local shareholder in November 2021.

DOJ’s reopened investigation

Even after the voluntary self-disclosure, and until the 2021 acquisition, Millicom continued to lack operational control over and visibility into the actions of Comcel. As previously disclosed, Millicom received a subpoena in April 2022.

As reflected in today’s agreement, Millicom and Comcel cooperated fully and extensively with DOJ’s investigation and provided to DOJ information and access in a way that was not possible in 2015, when Millicom lacked operational control of Comcel. The company also took major remediation steps, including exiting the general manager and other personnel at Comcel who were involved in misconduct.

Resolution with DOJ

The investigation is being resolved through a deferred prosecution agreement (DPA) between Comcel and DOJ. In recognition of the 2015 self-report and Comcel’s and Millicom’s extensive cooperation and remediation efforts, as well as the strength of Millicom’s global compliance program, the agreement will remain in place for two years, rather than a standard three-year term, and DOJ will not require a corporate monitor.

Under the terms of the agreement, Comcel will pay a $60 million fine and forfeit $58.2 million in approximate benefits derived from the improper payments. The fine amount represents a 50 percent discount off the bottom end of the applicable penalty range under the U.S. Sentencing Guidelines – the highest penalty discount available under applicable DOJ policy and more than has ever been granted to a company in an FCPA-related agreement of this kind – again reflecting Millicom’s extensive cooperation and remediation efforts. Millicom will also report to DOJ regarding its compliance program during the term of the DPA.

As this resolution reflects, for the past decade Millicom has consistently acted as a responsible and transparent company. “Although this misconduct occurred when we lacked operational control of Comcel, Millicom has consistently taken all possible actions to remediate and correct it,” said Salvador Escalon, Chief Legal and Compliance Officer at Millicom. “As soon as we gained control of Comcel, we were finally able to build a stronger, more transparent operation, just as we have been doing for many years in our other markets. Today, Comcel operates under our very high Millicom global standards.”

Millicom looks forward to continuing its focus on connecting people, driving digital inclusion, and contributing positively to the development of the markets in which it operates.

-END-

For further information, please contact

Press: Sofía Corral, Director Corporate Communications press@millicom.com

Investors: Luca Pfeifer, VP for Investor Relations investors@millicom.com

About Millicom

Millicom (NASDAQ: TIGO) is a leading provider of fixed and mobile telecommunications services in Latin America. Through its TIGO® and Tigo Business® brands, the company provides a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, highspeed data, voice, and business-to-business solutions such as cloud and security. As of September 30, 2025, Millicom, including its Honduras Joint Venture, employed approximately 14,000 people and provided mobile and fiber-cable services through its digital highways to more than 46 million customers, with a fiber-cable footprint over 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg with principal executive offices in Doral, Florida.

FAQ

What are the financial terms of the DOJ settlement for TIGO (Millicom) announced November 10, 2025?

Comcel will pay a $60 million fine and forfeit about $58.2 million in benefits, totaling $118.2 million.

How long is the deferred prosecution agreement for Comcel under Millicom (TIGO)?

The DPA term is two years, shorter than the typical three-year term, and DOJ did not require a corporate monitor.

Why did DOJ grant a reduced penalty to Comcel in the Millicom (TIGO) resolution?

DOJ cited Millicom’s 2015 voluntary self-disclosure, extensive cooperation, remediation, and the strength of its global compliance program as reasons for the discount.

Does the DOJ resolution affect Millicom’s reporting or compliance obligations?

Yes. Millicom and Comcel must report to DOJ about the company’s compliance program during the DPA term.

When did Millicom acquire full control of Comcel which enabled remediation?

Millicom acquired full ownership of Comcel in November 2021, after which it implemented strengthened compliance measures.

Were prior investigations into Comcel closed before the 2025 DOJ agreement?

Yes. Earlier probes were closed: the Swedish authority closed in 2016 and DOJ closed an earlier inquiry in 2018, following Millicom’s 2015 self-report.