Millicom Announces Infrastructure Deal Progress
Millicom International Cellular S.A. (NASDAQ: TIGO) has made significant strides in its transaction with SBA Communications. The company recently revealed the partial closing of its sale involving LATI International S.A., the holding company for its mobile passive infrastructure assets in Central America. This deal has resulted in around $600 million in completed proceeds, with total expected to reach approximately $975 million once finalized in the third quarter of the future year.
Special Dividend Declaration
Details of the Upcoming Dividend
In conjunction with this advancement, Millicom's Board of Directors is set to approve a special interim cash dividend of $2.50 per share. This distribution will represent about 45% of the net proceeds from the transaction, indicating a strong commitment to rewarding its shareholders. The dividend will be issued in two equal installments of $1.25 per share, anticipated around mid-October and mid-April of the following year.
Commitment to Shareholder Value
This special dividend is in addition to Millicom's established annual dividend of $3.00 per share, showcasing the company's dedication to enhancing shareholder value continuously. By focusing on strengthening financial flexibility and ensuring sustainable returns, Millicom reaffirms its discipline in capital management with a targeted leverage range of 2.0-2.5x.
Strategic Focus of Millicom
Monetization of Infrastructure Assets
Millicom's recent transaction is a strategic move to monetize infrastructure assets effectively, ensuring a pathway for growth and investment in future opportunities. The ability to close this transaction solidifies its position in the market while providing needed capital for further enhancements in services.
Overview of Millicom’s Operations
As a prominent telecommunications provider in Latin America, Millicom, through its TIGO and Tigo Business brands, delivers various digital services and products. These include mobile financial services, local entertainment, high-speed internet connectivity, and comprehensive business solutions. With a dedicated workforce of approximately 14,000, Millicom serves more than 46 million customers, boasting an extensive fiber-cable network passing over 14 million homes.
Conclusion
Millicom International Cellular S.A. continues to make significant advancements in infrastructure monetization while maintaining a strong focus on shareholder returns. With their recent move involving a substantial partial closing in the infrastructure deal and the announcement of a special dividend of $2.50, Millicom is positioned well for future growth while ensuring that its shareholders are acknowledged and rewarded.
Frequently Asked Questions
What is the recent infrastructure deal involving Millicom?
Millicom announced the partial closing of a transaction with SBA Communications through the sale of LATI International S.A., generating about $600 million.
What is the special dividend that Millicom plans to distribute?
Millicom intends to declare a special interim cash dividend of $2.50 per share, amounting to approximately 45% of the transaction's net proceeds.
How will the special dividend be paid?
The special dividend will be distributed in two $1.25 installments, slated for around October and April of the following year.
What is Millicom's overarching financial strategy?
Millicom aims to monetize infrastructure assets while maintaining a disciplined capital structure with a leverage target range between 2.0 and 2.5 times.
How many customers does Millicom serve?
Millicom serves over 46 million customers across Latin America, supported by a dedicated workforce of around 14,000 employees.
