Millicom and EPM Forge Key Alliance for Future Telecommunications
Millicom and EPM Forge Key Alliance for Future Telecommunications
Millicom (Tigo) is making significant strides in the telecommunications sector with its recent agreement with Empresas Públicas de Medellín (EPM). This pivotal partnership is set to enhance Millicom's acquisition strategy in Colombia, paving the way for the integration of Tigo-UNE and Colombia Telecomunicaciones (ColTel).
Understanding the Agreement
The agreement encompasses several crucial elements that reflect Millicom's commitment to the Colombian market. As per the details disclosed, Millicom will present a bid in EPM's Law 226 sale process. This process sets a baseline price for Tigo-UNE shares at COP$418,741, translating to an approximate valuation of USD $520 million. This strategic move signifies Millicom's intention to strengthen its foothold in Colombia's vibrant digital ecosystem.
Legal Protections and Shareholder Rights
The arrangement between Millicom and EPM ensures standard legal safeguards are in place. In this agreement, EPM has successfully negotiated an extension of its existing exit rights, safeguarding its interests should the Law 226 sale process face unforeseen challenges. Should EPM retain its stake in Tigo-UNE post-sale process, it has consented to support the impending merger between Tigo-UNE and ColTel, subject to specified closing conditions.
Commitment to the Market
Further emphasizing the significance of this partnership, Millicom plans to re-integrate Tigo-UNE into its Restricted Group, signifying a renewed strategic dedication to the market landscape. This decision highlights Millicom's long-term vision for growth and innovation in the telecommunications field.
CEO’s Insight on Future Prospects
According to Millicom's CEO, Marcelo Benitez, this agreement represents a pivotal moment in the company's growth trajectory within Colombia. He stated, "This agreement marks an important milestone for Millicom's strategy in Colombia. We are moving decisively with our integration plans while reaffirming our commitment to long-term investment in Colombia's digital ecosystem and infrastructure." This statement underscores Millicom's ambition to enhance its offerings and service diversity in the region.
About Millicom
Millicom (NASDAQ: TIGO) stands as a leading entity in fixed and mobile telecommunications services across Latin America. Under its TIGO and Tigo Business brands, the company delivers an extensive portfolio of digital services, which includes offerings like TIGO Money for mobile financial transactions, TIGO Sports for entertainment, TIGO ONEtv for pay television, and an array of high-speed data and B2B solutions, including cloud and cybersecurity services. With a workforce of approximately 14,000 people and services extended to over 46 million customers, Millicom continues to shape the telecommunications landscape.
Frequently Asked Questions
What is the nature of the agreement between Millicom and EPM?
The agreement facilitates Millicom's acquisition strategy in Colombia, focusing on merging Tigo-UNE with ColTel.
What are the key financial terms involved?
Millicom's bid in EPM's Law 226 sale process values Tigo-UNE shares at COP$418,741, amounting to approximately USD $520 million.
How does this agreement protect EPM's interests?
The agreement includes legal protections for EPM and offers an extension of its exit rights in case of unforeseen challenges in the sale process.
What is Millicom's commitment post-agreement?
Millicom plans to re-include Tigo-UNE in its Restricted Group, showing renewed commitment to the Colombian telecommunications market.
How many employees does Millicom have?
Millicom has around 14,000 employees and serves over 46 million customers across its operation regions.
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