Millicom (Tigo) Reaches Strategic Agreement with EPM to facilitate Merger Process with ColTel
Rhea-AI Summary
Millicom (NASDAQ:TIGO) has announced a strategic agreement with Empresas Públicas de Medellín (EPM) to advance its merger plans in Colombia between Tigo-UNE and Colombia Telecomunicaciones (ColTel). Under the agreement, Millicom commits to present an offer in EPM's Law 226 sale process at a minimum price of COP$418,741 per share of Tigo-UNE, totaling approximately USD $520 million.
The deal includes legal protections and extends EPM's exit rights if the sale process fails due to external factors. Notably, EPM has agreed to consent to the future Tigo-UNE and ColTel merger if they remain a shareholder after an unsuccessful sale process. As part of the transaction, Millicom will re-include Tigo-UNE in its Restricted Group, demonstrating its strategic commitment to the Colombian market.
Positive
- Strategic agreement advances the merger process between Tigo-UNE and ColTel in Colombia
- EPM's commitment to support the merger even if sale process is unsuccessful
- Re-inclusion of Tigo-UNE in Millicom's Restricted Group strengthens market position
- Clear valuation established at USD $520 million for the transaction
Negative
- Significant capital commitment required with USD $520 million purchase price
- Transaction completion subject to Law 226 sale process success
- Multiple closing conditions and regulatory approvals still needed
News Market Reaction – TIGO
In the Aug 15 session, TIGO gained 1.32%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Millicom (Tigo) Reaches Strategic Agreement with EPM to facilitate Merger Process with ColTel
Luxembourg, August 14, 2025 – Millicom (Tigo) today announced a key agreement with Empresas Públicas de Medellín (EPM) that advances its acquisition strategy in Colombia and unlocks a path toward the integration of Tigo-UNE and Colombia Telecomunicaciones (ColTel).
Under the terms of the agreement:
- Millicom has committed to present an offer in EPM’s Law 226 sale process, subject to the terms published by EPM on July 1, 2025, in which EPM set a minimum price of COP
$418,741 per share of Tigo-UNE, representing a total consideration of approximately USD$520 million .
- The agreement includes customary legal protections and EPM secured an extension of its existing exit rights if the Law 226 sale process does not succeed due to external factors.
- Should EPM remain a shareholder of Tigo-UNE due to an unsuccessful Law 226 sale process, EPM has agreed to provide consent for the proposed future merger between Tigo-UNE and ColTel, subject to certain closing conditions.
- As part of the transaction, Millicom will re-include Tigo-UNE in Millicom’s Restricted Group, reflecting the company’s renewed strategic commitment to the market.
“This agreement marks an important milestone for Millicom’s strategy in Colombia”, said Marcelo Benitez, CEO of Millicom. “We are moving decisively with our integration plans while reaffirming our commitment to long-term investment in Colombia’s digital ecosystem and infrastructure”
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For further information, please contact:
| Press: | Investors: |
| Sofia Corral, Director Corporate Communications press@millicom.com | 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 June 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.
