Millicom International Cellular, a telecommunications and media company which is a provider of fixed and mobile services dedicated to markets in Latin America, has signed an agreement to gain full control of Tigo Guatemala by acquiring the remaining 45% stake from its local joint venture partner in a $2.2 billion all-cash deal.
Through the deal, which is the largest-ever single foreign investment in the Central American country, the Luxembourg-based company will own a 100% equity interest in mobile services firm Tigo.
The transaction is expected to be significantly and immediately accretive to Millicom’s cash flow and net income and to increase Millicom’s equity-free cash flow by approximately $200 million before incremental financing costs, said a press release.
Bridge financing to fund the transaction is being provided by a group of leading international banks. Millicom intends to refinance the bridge with the planned issuance of approximately $1.5 billion of new long-term debt, and approximately $750 million of new equity via a rights offering expected for Q1 2022.
With this transaction, Millicom consolidates its position as the leading telecommunication service provider in Central America.
Millicom CEO Mauricio Ramos said: “We are delighted to have signed this agreement to consolidate a 100% ownership position in Tigo Guatemala, one of our most successful businesses. The transaction is right in line with our stated inorganic capital allocation strategy, which includes the acquisition of the remaining minority interests owned by third parties in our operations when those transactions can be executed in an accretive manner.”
“We thank our partners for their important role in developing Tigo Guatemala and for the support for this transaction.
For Millicom, this new investment reflects our continued confidence in the thriving economy of Guatemala and our renewed commitment to the digital transformation of its society. Hand in hand with the vision and strong commitment of our team of more than 3,100 employees in the country, we will continue to build the digital highways that connect people, improve lives, and develop communities all throughout Guatemala,” Ramos added.
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Source link : https://developingtelecoms.com/telecom-business/operator-news/12296-millicom-acquires-full-control-of-tigo-guatemala.html
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Publish date : 2021-11-12 03:00:00
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