Millicom Transitions to NASDAQ U.S.: Enhancing Shareholder Value
Millicom's Strategic Shift to NASDAQ U.S.
Millicom International Cellular S.A., also recognized as Millicom, has announced an important decision regarding the management of its stock listings. The company is consolidating its shares by moving from Nasdaq Stockholm to the NASDAQ U.S., effective March 17, 2025. This strategic move is aimed at enhancing shareholder value and simplifying corporate governance.
Rationale Behind the Delisting
The decision to file a delisting application highlights Millicom's ongoing commitment to improving liquidity for its investors. By consolidating its share listings onto one primary exchange, the Nasdaq Stock Market in the United States, Millicom aims to attract new investors focused on Latin American markets.
Benefits of the Consolidation
Millicom anticipates several advantages from this unification of its share listing. Increased liquidity, access to broader capital markets, and potential inclusion in high-profile equity indices are just a few of the anticipated benefits. Furthermore, this move is expected to result in a more streamlined corporate governance structure and reduced administrative costs.
Impacts on Shareholders
For existing shareholders holding Swedish Depositary Receipts (SDRs), it’s crucial to take action to maintain their investments. SDR holders need to contact their financial institutions to convert their holdings into Millicom U.S. Shares before the delisting occurs. Those who do not act in time may find their investments automatically converted to cash proceeds after the shares are sold off by the custodian bank.
Future Steps for Millicom
As Millicom navigates this transition, the company remains focused on continuing its operations and service offerings across Latin America. The company currently provides a wide array of digital products and services under its TIGO and Tigo Business brands. These include mobile services, financial solutions through TIGO Money, and entertainment via TIGO Sports.
Company Overview
Established in 1990 and headquartered in Luxembourg, Millicom (NASDAQ U.S.: TIGO, Stockholm: TIGO SDB) remains a prominent telecommunications leader in Latin America. With around 15,000 employees as of September 30, 2024, Millicom delivers mobile and fiber-optic services to over 46 million customers, maintaining a network that passes 14 million homes. This solidifies Millicom's position in providing essential communications infrastructure in the region.
Frequently Asked Questions
What does the delisting from Nasdaq Stockholm mean for shareholders?
The delisting means that SDR holders must convert their holdings into Millicom U.S. Shares to avoid automatic cash conversion after the delisting date.
How will this move benefit Millicom?
Consolidating onto NASDAQ U.S. is expected to enhance liquidity, streamline governance, reduce costs, and attract more investors.
What are the deadlines for SDR holders?
SDR holders must convert their SDRs before the expected end of trading on March 17, 2025.
What services does Millicom provide?
Millicom offers a variety of telecommunications services, including mobile, fiber-optic, and mobile financial services across Latin America.
How can I get more information on this transition?
Further details can be found in Millicom's previous press releases and communications sent to shareholders regarding the delisting.
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