Millicom's Acquisition of Telefónica Strengthens Regional Growth
Millicom Expands Footprint with Telefónica Acquisition
In a strategic move for growth, Millicom International Cellular S.A. (NASDAQ: TIGO) has successfully completed its acquisition of Telefónica Móviles del Uruguay S.A. (Movistar), following the final approval from the local government. The acquisition, valued at USD 440 million, signifies Millicom's official entry into the Uruguayan telecommunications market, enhancing its operations throughout South America.
A Strategic Decision for Digital Transformation
Marcelo Benitez, the CEO of Millicom, shared his enthusiasm about this acquisition, emphasizing it as a key milestone in the company's growth strategy. He stated, "We are thrilled to establish a presence in Uruguay — a country recognized for its stability and vision towards digital transformation. Our focus is to invest in the local infrastructure, foster innovation, and generate new opportunities that advocate for long-term digital growth." This vision aligns with Millicom's commitment to enhancing connectivity and accessibility across Latin America.
Driving Synergies and Enhancing Value Creation
The acquisition is projected to create significant synergies through the integration of networks, operations, and commercial services, diversifying Millicom's avenues for value creation. With Uruguay exhibiting robust macroeconomic fundamentals and investment-grade credit ratings, the integration is anticipated to positively impact free cash flow for shareholders starting in the upcoming financial year.
Consolidating Regional Presence
By incorporating Uruguay into its service portfolio, Millicom continues to solidify its position as a leading telecom operator in South America. This expansion not only broadens their market reach but also reinforces their commitment to fostering digital inclusion, contributing to sustainable development initiatives across the continent.
Commitment to Innovation and Customer Engagement
As Millicom enhances its service offerings across Latin America, the company remains focused on providing a wide range of digital and telecommunications services. Under its TIGO and Tigo Business brands, Millicom offers innovative solutions, including mobile financial services, entertainment, and advanced data solutions, catering to the evolving needs of millions of customers.
Connect with Millicom for More Information
For further inquiries, please contact:
Press:
Sofía Corral, Director Corporate Communications
Email: press@millicom.com
Investors:
Luca Pfeifer, VP Investor Relations
Email: investors@millicom.com
Frequently Asked Questions
What is the significance of Millicom's acquisition of Telefónica?
The acquisition enhances Millicom's presence in Uruguay and strengthens its operations across South America, promoting digital growth.
Who is the CEO of Millicom?
Marcelo Benitez is the current CEO of Millicom, leading the company's strategic initiatives.
What kind of services does Millicom offer?
Millicom provides a variety of telecommunications and digital services, including mobile services, financial solutions, pay TV, and business solutions.
When is the expected positive impact on free cash flow?
Millicom anticipates seeing a positive contribution to free cash flow for shareholders starting in the year following the acquisition.
How many employees does Millicom have?
As of mid-2025, Millicom employs approximately 14,000 individuals across its operations in Latin America.
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