Millicom to take full control of mobile operator Tigo Guatemala for $2.2 bln
12/11/2021 02:13
Nov 12 (Reuters) - Telecoms service provider Millicom
International MICC.F said on Friday it had signed an agreement
to gain full control of Tigo Guatemala by acquiring the
remaining 45% stake from its local joint venture partner in an
$2.2 billion all-cash deal.
Through the deal, which is the largest-ever single foreign
investment in the Central American country according to the
Financial Times https://www.ft.com/content/3afa87d9-12bc-4ab9-9d20-e94712b81a62,
the Luxembourg-based company will own a 100% equity interest in
mobile services firm Tigo.
The company said a group of leading international banks will
provide bridge financing for the deal, adding, it intends to
refinance the bridge with a planned issuance of about $1.5
billion of new long-term debt, and about $750 million of new
equity through rights offering likely in the first quarter of
2022.
"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," Chief
Executive Officer Mauricio Ramos said in a statement.
The deal, which is expected to be significantly and
immediately accretive to Millicom's cash flow, is expected to
increase Millicom's equity free cash flow by about $200 million
before incremental financing costs.
(Reporting by Rhea Binoy and Aakriti Bhalla in Bengaluru;
Editing by Rashmi Aich)
((Rhea.Binoy@thomsonreuters.com;))