Millicom Enhances Shareholder Value Through Strategic Repurchases

Millicom's Strategic Share Repurchase Activity

Millicom, known for its innovative telecommunications services in Latin America, is currently executing a share repurchase program aimed at enhancing shareholder value. This strategic move reflects the company’s commitment to its investors, showcasing confidence in its long-term growth prospects. Recently, they repurchased a total of 83,477 Swedish Depository Receipts (SDRs) between selected trading days in late December.

Details of the Recent Repurchase

The share repurchase initiative, which commenced as announced earlier in November, saw significant activity on specific trading dates. On December 23, Millicom purchased 57,000 SDRs at an average price of SEK 268.5452, amounting to a total daily repurchase of approximately SEK 15,307,076. Following this, on December 27, the company acquired an additional 26,477 SDRs at a slightly higher average price of SEK 270.4081, totaling around SEK 7,159,595.

Current Shareholding Position

As of December 27, 2024, Millicom holds 1,808,117 treasury shares from these transactions. The company's total outstanding shares stand at 172,096,305, positioning it favorably in the market. This repurchase program is in compliance with the regulations established under Article 5 of the Market Abuse Regulation (MAR) and adheres to the Safe Harbour Regulation.

Understanding the Importance of Share Buybacks

Share buybacks are a powerful tool used by companies to signal strength and confidence in their business model. By reducing the number of outstanding shares, a company can increase earnings per share (EPS), potentially leading to an uptick in stock price. It also shows existing shareholders that the company is committed to returning capital to them.

The Impact on Investors

Investors often view share repurchase programs positively. They reflect a company’s robust financial health and reduce uncertainty among shareholders. For Millicom, this is particularly important as it seeks to solidify investor trust and enhance its market position. The ongoing repurchase strategy could very well lead to positive price movements, attracting more interest in the stock.

About Millicom

Millicom (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) stands out as a premier telecommunications provider in Latin America. Operating under the TIGO® and Tigo Business® brands, Millicom offers an array of digital services aimed at improving connectivity across the region. Its services include mobile financial solutions with TIGO Money, local entertainment through TIGO Sports, and extensive high-speed data and fiber-cable offerings. With a workforce of around 15,000 employees and reaching over 46 million customers, Millicom’s impact on the telecommunications landscape is significant.

A Commitment to Quality and Innovation

Founded in 1990, Millicom continues to innovate and expand its services, leveraging technology to provide comprehensive telecommunications solutions. They pride themselves on maintaining a fiber-cable footprint that spans approximately 14 million homes. This robust infrastructure underlines Millicom's dedication to quality and customer service in the evolving digital marketplace.

Frequently Asked Questions

What prompted Millicom to execute the share repurchase program?

The share repurchase program is intended to enhance shareholder value and demonstrate the company's confidence in its long-term growth trajectory.

How many SDRs did Millicom repurchase recently?

Millicom repurchased a total of 83,477 Swedish Depository Receipts (SDRs) in December 2024.

Which regulations are guiding Millicom's repurchase activities?

Millicom's share repurchase activities adhere to Article 5 of the Market Abuse Regulation (MAR) and the Safe Harbour Regulation.

What is Millicom’s strategy following these repurchases?

Millicom aims to enhance shareholder confidence, boost earnings per share, and increase the stock price through reduced outstanding shares.

How does Millicom's workforce contribute to its success?

With approximately 15,000 employees, Millicom harnesses a dedicated team to drive innovation and provide quality telecommunications services across its market.

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