Millicom (Tigo) announces new shareholder remuneration policy
Rhea-AI Summary
Millicom (TIGO) has announced a new shareholder remuneration policy that includes the resumption of regular cash dividends. The company's Board of Directors aims to sustain or grow cash dividends annually while maintaining a prudent capital structure with a long-term leverage target range of 2.0-2.5x.
Following the recent $1.00/share interim dividend paid on January 10, the Board plans to approve an additional $0.75/share interim dividend after Q4 2024 results, payable in April 2025. Furthermore, the Board will propose a $3.00 per share dividend at the May 21, 2025 Annual General Meeting, to be paid in four quarterly installments of $0.75/share from July 2025 through April 2026.
This policy reflects the company's commitment to returning capital to shareholders while considering the capital-intensive nature of the business and Latin American market volatility.
Positive
- Implementation of new regular cash dividend policy
- Total proposed dividend of $4.75 per share for 2025-2026 period
- Commitment to sustain or grow cash dividends annually
- Clear dividend payment schedule with quarterly distributions
Negative
- Exposure to Latin American political and macroeconomic volatility
- Capital-intensive business model requiring significant ongoing investment
News Market Reaction – TIGO
On the day this news was published, TIGO gained 9.35%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Millicom (Tigo) announces new shareholder remuneration policy
Luxembourg, January 14th, 2025 – Millicom International Cellular S.A. ("Millicom" or the “Company”), today announced that the Company’s Board of Directors (the “Board”) has approved a new shareholder remuneration policy under which it proposes to:
- resume regular cash dividends;
- sustain or grow cash dividends every year; and
- maintain a prudent capital structure, with a long-term leverage target range of 2.0-2.5x
With this policy, the Board aims to return capital to shareholders from the cashflow generation of the Company in a consistent and prudent manner that reflects the capital-intensive and highly-regulated nature of the business, as well as the Latin American region’s elevated political and macroeconomic volatility.
Following the interim dividend of
$0.75 /share to be paid in April 2025
Furthermore, the Board intends to propose for the approval of the Annual General Meeting of its shareholders to be held in Luxembourg on May 21, 2025, a dividend of
$0.75 /share in July, 2025$0.75 /share in October, 2025$0.75 /share in January, 2026$0.75 /share in April, 2026
Regulatory Statement
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 below, at 22:30 CET on January 14, 2025.
-END-
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 September 30, 2024, Millicom, including its Honduras Joint Venture, employed approximately 15,000 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.
Forward-Looking Statements
Statements included herein that are not historical facts, including without limitation statements concerning the payment of the interim dividend and the timing of such payment, the payment of the dividend in four quarterly instalments and the timing of such payments, and the proposal to sustain or grow cash dividends every year and the proposal to maintain a prudent capital structure are forward-looking statements. Such forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. Moreover, the proposals to sustain and grow cash dividends are dependent in particular upon the performance of the Company which is subject to risks and uncertainties. In the event such risks or uncertainties materialize, Millicom’s results and its ability to pay the interim dividend or the dividend, or to sustain and grow the dividend, could be materially adversely affected. A list and description of such risks, uncertainties and other matters can be found under the heading “Risk Factors” in Millicom’s Annual Report on Form 20-F for the year ended December 31, 2023, which is available on the website of the U.S. Securities and Exchange Commission at www.sec.gov.
All forward-looking statements attributable to Millicom or any person acting on its behalf are expressly qualified in their entirety by this cautionary statement. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Except to the extent otherwise required by applicable law, Millicom does not undertake any obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
FAQ
What is Millicom's (TIGO) new dividend payment schedule for 2025-2026?
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