Millicom (Tigo) and Telefonica sign definitive sale-purchase agreement in Colombia

Rhea-AI Summary

Millicom (Tigo) has signed a definitive agreement to acquire Telefonica's 67.5% controlling stake in Coltel, following their July 31, 2024 announcement. The purchase price is set at $400 million, which adjusts to $362 million as of September 30, 2024, considering net debt, working capital, and forex changes.

Millicom will also extend an offer to purchase the remaining 32.5% stake owned by La Nación and other investors at the same price per share. The merger aims to create a stronger telecom entity in Colombia with enhanced capabilities for network and spectrum investments. Additionally, Millicom has reiterated its offer to acquire its partner's 50% stake in UNE at a valuation multiple comparable to the Coltel acquisition.

Positive

• Strategic expansion of market presence in Colombia
• Creation of a stronger telecom entity with enhanced investment capabilities
• Potential for complete ownership through additional stake purchases
• Opportunity for operational synergies and improved market competitiveness

Negative

• Significant capital outlay of $362-400 million required
• Deal completion subject to regulatory uncertainty
• Additional capital needed if minority stakeholders accept buyout offer

News Market Reaction – TIGO

-1.53%

1 alert

-1.53% News Effect

On the day this news was published, TIGO declined 1.53%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Millicom (Tigo) and Telefonica sign definitive sale-purchase agreement in Colombia

Luxembourg, March 12, 2025 – Pursuant to the announcement on July 31, 2024, Millicom and Telefonica have entered into a definitive agreement for the acquisition by Millicom of Telefonica’s controlling 67.5% equity stake in Coltel, subject to closing conditions including regulatory approvals. Millicom has also agreed to offer to purchase the remaining 32.5% of Coltel equity owned by La Nación and other investors at the same purchase price per share offered to Telefonica. In line with the prior announcement, the purchase price of $400 million is subject to customary adjustments for net debt evolution, working capital and changes in foreign exchange rates, and as of September 30, 2024, would be $362 million.

The proposed combined entity would rejuvenate Colombia's telecom sector by forming a robust telecom entity with the necessary scale and financial capacity to support the significant network and spectrum investments required to achieve Colombia's ambitious digital inclusion objectives. 

Millicom also reiterates its offer to acquire its partner’s 50% stake in UNE for cash at a price per share derived from applying a valuation multiple comparable to the one implied by the Coltel acquisition. 

Millicom CEO Marcelo Benitez commented, “This transaction strengthens our presence in Colombia, and with this strategic move, Millicom reaffirms its ongoing commitment to expanding connectivity and coverage, accelerating digital transformation, and actively contributing to Colombia's continued growth and competitiveness.”

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For further information, please contact

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

Investors: Michel Morin, VP Investor Relations investors@millicom.com

 

About Millicom

Millicom (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) is a leading provider of fixed and mobile telecommunications services in Latin America. Through our TIGO® and Tigo Business® brands, we provide 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, high-speed data, voice, and business-to-business solutions such as cloud and security. As of December 31, 2024, 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 of about 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg.

Regulatory Statement

Certain of this information was, prior to this release, inside information and is information that Millicom is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out above, at 23.50 CET on March 12, 2025.

FAQ

What is the value of Millicom's acquisition of Telefonica's stake in Coltel?

The purchase price is $400 million, adjusted to $362 million as of September 30, 2024, considering net debt, working capital, and forex changes.

What percentage stake is TIGO acquiring in the Coltel deal?

TIGO is acquiring Telefonica's 67.5% controlling stake and offering to purchase the remaining 32.5% from La Nación and other investors.

What additional acquisition offer has TIGO made alongside the Coltel deal?

TIGO has reiterated its offer to acquire its partner's 50% stake in UNE at a valuation multiple comparable to the Coltel acquisition.

What are the conditions for completing TIGO's acquisition of Coltel?

The deal is subject to closing conditions, including regulatory approvals.