Welcome to our dedicated page for Millicom Intl Cellular S A news (Ticker: TIGO), a resource for investors and traders seeking the latest updates and insights on Millicom Intl Cellular S A stock.
Millicom International Cellular S.A. reports developments in fixed and mobile telecommunications across Latin America through its TIGO and Tigo Business brands. Company news centers on mobile and fiber-cable services, high-speed data, voice, pay TV, mobile financial services, local entertainment and business-to-business cloud and security offerings.
Recurring updates include operating results, network and fiber-capacity investments, regional connectivity agreements, sports-content arrangements, Colombia consolidation through Coltel, senior-note financing and redemption actions, and shareholder meeting matters.
Millicom (Tigo) reported strong Q2 2024 results with revenue up 4.7% to $1.46 billion and EBITDA up 23.1% to $634 million. Operating profit surged 74.1% to $345 million, while net income reached $78 million ($0.46 per share). The company generated $268 million in equity free cash flow and reduced leverage to 2.77x.
CEO Marcelo Benitez highlighted the company's transformation efforts, focusing on increasing cash flow generation, streamlining operations, and enhancing productivity. Millicom is prioritizing ARPU growth in Mobile, reducing churn in Home, and accelerating B2B growth. The company targets equity-free cash flow above $600 million in 2024 and aims to reduce leverage to near 2.5x by year-end.
Liberty Latin America (LLA) and Millicom have agreed to combine their operations in Costa Rica, creating a joint venture with LLA holding approximately 86% and Millicom 14%. The combined entity had an Adjusted OIBDA of $255 million, over 440,000 broadband subscribers, and net debt of $533 million as of December 31, 2023. This merger aims to accelerate fiber network expansion, enhance competition, and improve services for Costa Rican consumers.
The transaction is expected to close in the second half of 2025, subject to regulatory approvals. The combined company will focus on transitioning to Fiber-to-the-Home (FTTH) technology, offering high-speed services, and driving innovation in the telecommunications sector.
Millicom (NASDAQ: TIGO) has announced potential acquisitions in Colombia, entering a non-binding memorandum of understanding with Telefonica. The deal involves the possible combination of Telefonica Colombia (Coltel) and TigoUne. Millicom plans to acquire Telefonica's stake in Coltel for about $400 million in cash and intends to offer to purchase La Nación's and other minority interests in Coltel at the same price. Additionally, Millicom aims to acquire Empresas Públicas de Medellin's 50% interest in TigoUne.
The total investment is estimated at $1 billion in cash and assumed debt, to be funded through equity free cash flow over the next 18 months. The transaction is subject to definitive agreements, regulatory approvals, and other conditions. If successful, the combined entity would create a robust telecom operator in Colombia, supporting digital inclusion objectives and advancing Fiber and 5G technologies deployment.
Millicom International Cellular S.A. (TIGO) has distributed a total of 31,682 shares to its Board of Directors as part of their remuneration. This distribution, approved by shareholders at the annual general meeting on May 23, 2024, covers the share-based portion of director compensation for the period from the 2024 AGM to the 2025 AGM, expected to be held in May 2025. The company has disclosed detailed information about these distributions on its website, ensuring transparency for investors and stakeholders. This move aligns with Millicom's commitment to incentivize and retain top talent in its leadership team.
Millicom (Tigo) has announced that it will release its second quarter 2024 results on August 2, 2024, through a press release. The company will host a video conference for the global financial community on the same day at 14:00 (Stockholm) / 13:00 (London) / 08:00 (Miami).
Participants must register for the interactive event and can join in listen-only mode by dialing specific numbers. Those wishing to ask questions during the live event should notify the Investor Relations team via email after the event starts. Accompanying slides and a replay of the event will be available on Millicom's investors website.
Millicom's Independent Committee has unanimously recommended that shareholders reject the tender offers made by Atlas Luxco S.à r.l at $24 per share. The committee believes the offer significantly undervalues Millicom (TIGO) based on several factors:
1. The offer price doesn't adequately reflect Millicom's expected Equity free cash flow of $659 million, $701 million, and $833 million in 2024, 2025, and 2026 respectively.
2. It represents a 37.3% discount compared to trading multiples of comparable companies.
3. The offer price is below recent closing prices, including a 3.1% discount to the July 12, 2024 closing price.
4. The offered premium is significantly lower than average control premia in similar transactions.
5. Nordea Bank has provided an opinion stating the offer price is not fair from a financial perspective.
The independent committee of Millicom's (TIGO) Board of Directors unanimously recommends that shareholders and SDR holders reject the public cash offers from Atlas Luxco S.à r.l., valuing Millicom at approximately $4.1 billion, or $24.00 per share.
The committee believes the offers significantly undervalue Millicom, citing the company's strong financial outlook, with expected equity free cash flow of $659 million in 2024, rising to $833 million by 2026, and a leverage ratio expected to improve to 1.5x by 2026.
Nordea Bank's fairness opinion supports this view, stating the offer price is not fair from a financial perspective. The committee also notes that the offer includes negative premiums and positive premiums compared to recent share prices.
Additionally, the offer does not adequately consider Millicom's strategic potential, including potential dividends, share repurchases, or return of capital to shareholders. The committee recommends shareholders not tender their shares and highlights the ongoing support from Atlas in Millicom's strategic plan execution.
Millicom (Tigo) has entered a new phase in its collaboration with Amazon Web Services (AWS) to enhance its cloud services for businesses in Latin America. The new agreement will help Tigo Business meet the growing demand for professional cloud services and become the primary partner for AWS customers in the region. This initiative aims to support the digital transformation of businesses across nine Latin American countries.
According to IDC, the cloud market size in Central America and the Caribbean is projected to reach $283.2 million in 2024, with a CAGR of 18.6% from 2023 to 2028. The partnership will also focus on digital inclusion and training in Latin America. Tigo Business has invested significantly in SD-WAN services, managed security, and multi-cloud offerings, consolidating its leadership in the regional market.
The agreement is a strategic move to expand Tigo Business's digital solutions portfolio, offering advanced services that ensure security, connectivity, and innovation, thereby fostering Latin America's digital transformation.
A committee of independent directors from Millicom's (Tigo) board has evaluated an anticipated all-cash tender offer by Atlas Luxco at $24 per share for all outstanding shares and SDRs in Millicom that Atlas does not already own. The committee believes this offer undervalues Millicom, citing a review of expected financial performance. Preliminary estimates for 2024 indicate Millicom's Equity Free Cash Flow (EFCF) will exceed $600 million, excluding $46 million from a Colombia tower sale. Additionally, leverage is projected to reach a target of 2.5x.
The committee has entered exclusive negotiations for a sale and leaseback of a significant portion of Millicom's tower portfolio. Any formal recommendation regarding the tender offer will align with Swedish Takeover Rules. Advising the committee are Goldman Sachs, Morgan Stanley, Davis Polk & Wardwell LLP, and others.
Millicom (Tigo) has received a non-binding expression of interest from shareholder Atlas Luxco S.à.r.l. regarding a potential all-cash tender offer for all outstanding shares at $24 per share. This follows Atlas's earlier press release and Form 13D filing. The Board of Directors will review any forthcoming offer, but there is no certainty of a transaction occurring, nor clarity on its terms, timing, or form.