Millicom Engages EPM to Propel Merger with ColTel
Millicom (Tigo) has recently taken a significant step in its service expansion in Colombia. By signing a strategic agreement with Empresas Públicas de Medellín (EPM), Millicom is paving the way for an integration plan involving Tigo-UNE and Colombia Telecomunicaciones (ColTel). This partnership represents a critical advancement in Millicom's acquisition strategy and commitment to enhancing the digital landscape in Colombia.
Details of the Strategic Agreement
As per the agreement, Millicom has pledged to submit a bid in EPM’s Law 226 sale process. This process stipulates a minimum price of COP$418,741 per share of Tigo-UNE, translating to an expected total investment of around USD $520 million. This move demonstrates Millicom's dedication not only to expanding its market presence but also to securing its future growth in the region.
Legal Protections and Shareholder Considerations
The agreement is equipped with standard legal protections, ensuring that EPM retains its existing exit rights in the event of an unsuccessful sale process influenced by external variables. Should the Law 226 sale not materialize successfully, EPM's obligations and commitments shift slightly. EPM agrees to support the merger between Tigo-UNE and ColTel, pending certain conditions are met regarding the closure of the process.
Renewed Commitment to Colombia
In a move to solidify its market presence, Millicom has decided to re-include Tigo-UNE within its Restricted Group. This re-inclusion underscores the company's renewed focus on the Colombian telecommunications sector. Marcelo Benitez, CEO of Millicom, noted, “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.”
Millicom's Role in the Telecommunications Industry
Millicom (NASDAQ: TIGO) has long been a pivotal player in Latin America's telecommunications market. Through its TIGO and Tigo Business brands, Millicom offers an extensive array of services, including mobile financial solutions with TIGO Money, local entertainment via TIGO Sports, and advanced telecommunications services with TIGO ONEtv. High-speed data, voice services, and business solutions—encompassing cloud and security—add to the rich tapestry of offerings that Millicom provides customers.
Millicom's Impact and Expansion
As of the midpoint of 2025, Millicom, in collaboration with its Honduras Joint Venture, has a workforce of approximately 14,000 employees dedicated to delivering high-quality services. The company services over 46 million customers by leveraging a fiber-cable infrastructure that passes more than 14 million homes. Founded in 1990 and headquartered in Luxembourg, Millicom's strategic decisions continue to reshape the telecommunications landscape in Latin America.
Frequently Asked Questions
What is the purpose of Millicom's agreement with EPM?
The purpose is to facilitate Millicom's acquisition strategy in Colombia, enabling integration with ColTel.
What is the minimum price set by EPM for Tigo-UNE shares?
The minimum price is COP$418,741 per share of Tigo-UNE.
What commitments does EPM have if the sale process fails?
EPM has agreed to support the merger of Tigo-UNE and ColTel under certain conditions if the sale is unsuccessful.
How does this agreement impact Millicom's strategy in Colombia?
This agreement marks a significant milestone, reinforcing Millicom’s investment strategy and operational plans in Colombia.
How many customers does Millicom serve?
Millicom serves over 46 million customers through its various services across Latin America.
