Millicom (Tigo) signs agreement to acquire Entel Peru, expanding its presence across Latin America

Rhea-AI Summary

Millicom (TIGO) has signed an agreement to acquire Entel Peru for US$1,714 million, including lease liabilities, expanding its Latin American presence. The price implies 5.0x estimated 2026 EBITDA, before synergies and integration costs. Payments are structured as 65% at closing, 10% twelve months later and 25% eighteen months later.

Millicom expects closing in early December 2026, subject to closing conditions, with funding from local financing and cash on hand. Completion would expand its footprint to 13 markets. The company expects the acquisition to increase equity free cash flow in the first year after completion, year-end 2026 leverage to remain around 2.5x including the acquisition, and no adverse effect on planned shareholder distributions. Its post-completion plans include efficiency improvements, working-capital optimization and expansion of higher-value connectivity services.

7 points · 0 major

MixediHow this balance works

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0 major · 4 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Entel Peru acquisition agreement would expand Millicom’s footprint to 13 markets upon completion.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Millicom expects equity free cash flow accretion in the first year following completion.
• Minor point. Forward-looking: it has not happened yet and may not happen.Millicom expects year-end 2026 leverage around 2.5x, including the acquisition.
• Minor point. Forward-looking: it has not happened yet and may not happen.Planned shareholder distributions are not expected to be adversely affected by the transaction.
• Minor point. Forward-looking: it has not happened yet and may not happen.Millicom expects increased cash generation to strengthen distribution capacity over time.

2 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Post-completion plans target efficiency improvements and working-capital optimization.
• Minor point. Forward-looking: it has not happened yet and may not happen.Millicom plans higher-value connectivity services, using Entel Peru’s wholesale fiber partnerships to support capital-efficient growth.

Negative

• Moderate pointAcquisition consideration of US$1,714 million, including lease liabilities, implies 5.0x estimated 2026 EBITDA before synergies and integration costs. 13% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Purchase payments require 65% at closing, 10% twelve months after closing and 25% eighteen months after closing.
• Minor point. Forward-looking: it has not happened yet and may not happen.Acquisition funding is expected to use local financing and cash on hand.
• Minor pointClosing expected in early December 2026 remains subject to satisfaction of closing conditions.

Key Figures

Purchase price: US$1,714 million Transaction multiple: 5.0x estimated 2026 EBITDA Purchase price installments: 65% at closing; 10% after 12 months; 25% after 18 months +4 more

Purchase price

US$1,714 million

Includes lease liabilities

Transaction multiple

5.0x estimated 2026 EBITDA

Before synergies and integration costs

Purchase price installments

65% at closing; 10% after 12 months; 25% after 18 months

Payment schedule

Expected closing

Early December 2026

Subject to closing conditions

Equity free cash flow

Expected to be accretive in the first year following completion

Expected transaction impact

Year-end leverage

Around 2.5x

Expected for 2026, including the acquisition

Markets

13 markets

Millicom's footprint upon completion

Previous Acquisition Reports

2 past events · Latest: Oct 07

Same Type 2 events

1. Oct 07

   Uruguay acquisition

   24h Move

   +0.2%

   Completed Telefónica Uruguay acquisition; positive free-cash-flow contributions were projected from 2026.

2. Oct 30

   Ecuador acquisition

   24h Move

   +0.7%

   Completed Telefónica Ecuador acquisition, expanding Millicom's South American footprint.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, lease liabilities, sovereign bond spread

3 terms

ebitda financial

"transaction multiple of 5.0x estimated 2026 EBITDA"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

lease liabilities financial

"US$1,714 million, including lease liabilities"

Lease liabilities are the recorded obligations a company has to make future payments for assets it uses under lease contracts, treated on the balance sheet much like a loan for rented equipment or property. Investors care because these liabilities increase a firm’s reported debt and affect measures of leverage, cash requirements and credit risk, so recognizing them gives a clearer picture of financial strength and the company’s ability to meet obligations.

sovereign bond spread financial

"its J.P. Morgan sovereign bond spread stood at 121 basis points"

The sovereign bond spread is the difference between the yield on a country’s government bond and the yield on a chosen benchmark government or risk-free bond of the same maturity; it is usually expressed in basis points (1 basis point = 0.01%). It is calculated by subtracting the benchmark yield from the sovereign yield and serves as a market measure of how much extra return investors demand to hold that country’s debt rather than the benchmark; the spread depends on perceived credit risk, expected inflation, liquidity and market conditions. The numeric value and its interpretation depend on which benchmark is used (for example, a domestic Treasury, a major economy’s government bond, or an interest-rate swap), and spreads can be positive or negative depending on relative yields.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Millicom (Tigo) signs agreement to acquire Entel Peru, expanding its presence across Latin America

The transaction expands Millicom’s presence in investment-grade markets and is expected to be accretive to equity free cash flow in the first year following completion. Closing is expected in early December, subject to customary closing conditions.

  

Luxembourg, November 13, 2026 – Millicom (NASDAQ: TIGO) today announced that it has signed an agreement to acquire Entel Peru for US$1,714 million, including lease liabilities, implying a transaction multiple of 5.0x estimated 2026 EBITDA, before synergies and integration costs. This transaction marks another important step in Millicom's regional growth strategy and is expected to be funded through a combination of local financing and cash on hand. The purchase price will be paid in three installments: 65% at closing, 10% twelve months after closing, and 25% eighteen months after closing. The transaction is expected to close in early December 2026, subject to satisfaction of certain closing conditions.

Upon completion, the acquisition would expand Millicom’s footprint to 13 markets and further advance its strategy of geographic diversification, increasing its presence in investment-grade economies. Peru, which holds investment-grade sovereign ratings from Moody’s, S&P and Fitch, offers a market of more than 34 million people and an attractive foundation for long-term growth in connectivity and digital services.

Entel Peru’s established network, strong postpaid customer base and enterprise relationships provide an attractive platform for profitable growth. Following completion, Millicom intends to build on these strengths by applying its operational improvement capabilities, regional purchasing power and disciplined approach to capital allocation. The Group sees significant opportunities to improve efficiency, optimize working capital and strengthen cash generation, while preserving service quality and customer experience.

The acquisition would also create opportunities to expand higher-value services for consumers and businesses. Entel Peru’s access to an extensive fiber footprint through wholesale partnerships, combined with Millicom’s experience in mobile and home connectivity, would support capital-efficient growth in convergent services, stronger customer relationships and additional recurring revenues.

Millicom expects the transaction to be accretive to equity free cash flow in its first year following completion, consistent with the approach taken in its recent Telefónica acquisitions. Despite the anticipated closing late in the year, the Group expects year-end 2026 leverage to remain around 2.5x, including the acquisition. The transaction is not expected to adversely affect planned shareholder distributions and is expected to strengthen the Group’s capacity to support distributions over time through increased cash generation.

Marcelo Benitez, CEO of Millicom, commented: “We are very excited about entering Peru, a great country with tremendous potential and an important new chapter in our growth journey across Latin America. Over the past few years, we have demonstrated our ability to successfully integrate new operations, improve customer experience and deliver strong financial results. We have a proven playbook built around our Double-E strategy: delivering the best customer Experience with the greatest Efficiency. We are confident in our ability to replicate that success in Peru. Entel Peru brings a strong network, loyal customers and a talented team. Together, we see a great opportunity to invest in connectivity, bring better services and greater value to Peruvian consumers and businesses, and contribute to the country’s digital development. Our focus remains the same: disciplined execution, profitable growth and sustainable cash flow generation. We look forward to welcoming the Entel Peru team to the Millicom family and building a successful future together.”

Peru: An attractive platform for long-term growth

• A sizeable market with significant digital potential: With more than 34 million people, Peru offers a substantial customer base for mobile connectivity, home broadband and enterprise solutions. Millicom sees opportunities to deepen digital adoption and expand higher-value services for households and businesses.
• A growing economy with an attractive medium-term outlook: The IMF’s October 2026 projections anticipate economic growth of 2.9% in 2027 and 3.2% in 2028, with nominal GDP reaching approximately US$414 billion in 2027. Strong macroeconomic institutions, relatively low public debt and substantial international reserves provide a supportive foundation for long-term investment.
• Investment-grade credentials and international investor confidence: Peru holds investment-grade sovereign ratings of Baa1 from Moody’s, BBB from Fitch and BBB− from S&P. As of November 5, 2026, its J.P. Morgan sovereign bond spread stood at 121 basis points, approximately 43% below the Latin American benchmark, placing Peru among the region’s lowest sovereign-risk markets.
• Growing demand for recurring connectivity services: Mobile service revenues increased by 5.6% and fixed internet revenues by 5.8% in 2025, according to OSIPTEL. Postpaid and controlled-plan mobile subscriptions grew by 10.1%, highlighting an expanding market for recurring services and deeper customer relationships.
• Expanding fiber adoption across the country: Fiber connections grew by approximately 21% in 2025, with growth exceeding 26% outside Lima and Callao. This expansion supports opportunities to combine mobile and home broadband services, improve customer retention and bring advanced connectivity to more communities.
• A strong fit with Millicom’s capabilities: These market dynamics offer an attractive setting for Millicom to apply its regional scale, experience in convergent services and disciplined investment approach. Following completion, the Group would seek to translate this potential into profitable growth, stronger cash generation and lasting benefits for customers.

For further information, please contact:

Press:	Investors:
Sofia Corral, Director Corporate Communications press@millicom.com	Luca Pfeifer, VP of 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 ONEtv for pay TV, high-speed data, voice, and business-to-business solutions such as cloud and security. As of September 30, 2026, Millicom, including its Honduras Joint Venture and Chile associate, employed approximately 19,000 people and provided mobile and fiber-cable services through its digital highways to more than 65 million customers, with a fiber-cable footprint over 28 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg with principal executive offices in Doral, Florida.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much is Millicom paying to acquire Entel Peru?

Millicom agreed to acquire Entel Peru for US$1,714 million, including lease liabilities. The transaction implies 5.0x estimated 2026 EBITDA before synergies and integration costs. The purchase price is payable in three installments: 65% at closing, 10% twelve months after closing and 25% eighteen months after closing.

When does Millicom expect the Entel Peru acquisition to close?

Millicom expects the Entel Peru acquisition to close in early December 2026, subject to satisfaction of closing conditions. Completion would expand the company’s footprint to 13 markets.