Millicom's Dividend Announcement and Strategic Changes
Millicom International Cellular S.A. has recently unveiled critical updates regarding its interim dividend and the intended delisting of its Swedish Depository Receipts (SDRs) from Nasdaq Stockholm. This decision signifies important strategic changes that will affect both Swedish and U.S. shareholders.
Details of the Interim Dividend
The company's Board of Directors has declared an interim dividend of $1.00 per share following the announcement made earlier in November. This dividend will be distributed to eligible shareholders, with the expected payment date set for January 10.
Key Dates for Shareholders
There are several notable dates concerning the dividend distribution that stakeholders need to remember:
- Record Date: Shareholders registered in the U.S. and Sweden will be eligible for the dividend as of January 3.
- Conversion Stoppage: Important to note, conversions of SDRs to Millicom U.S. Shares won't be allowed from December 23 until January 3.
- Ex-Dividend Date: This will be January 2 for SDRs and January 3 for Millicom U.S. Shares. Purchases made after these dates will not qualify for the dividend.
- Currency Conversion: Shareholders in the U.S. will receive payments in USD, while SDR holders will be paid in SEK at the official exchange rate set on January 3.
- Payment Date: As mentioned, the dividend payment is expected on January 10.
Shareholders wishing to receive their interim dividend in USD must convert their SDRs into Millicom U.S. Shares by submitting the necessary conversion instructions by December 20.
Moving Towards SDR Delisting
In a significant move, Millicom has also announced its intention to delist its SDRs from Nasdaq Stockholm. The formal application for delisting will be submitted sometime after March 3, with the last trading day anticipated around March 17.
Implications for SDR Holders
The delisting would mean that shareholders holding SDRs must convert them to Millicom U.S. Shares. This conversion process is essential for retaining their equity in Millicom. The company plans to execute conversions in multiple tranches, beginning on January 20 and occurring weekly thereafter.
Holders of SDRs must ensure they have the appropriate accounts set up to successfully withdraw and hold the underlying U.S. Shares. Additional information regarding the delisting and conversion process will be made available on the company’s dedicated webpage.
Logistical Details on Conversions
For those interested in converting SDRs to U.S. Shares, Millicom has clarified a few logistics:
- Eligible Accounts: SDR holders should check with their bank to ensure they have an eligible account to receive Millicom U.S. Shares.
- Conversion Tranches: These will start weekly from January 20 and will depend on timely submission of conversion instructions.
- Fees: While Millicom covers certain conversion fees, holders might incur additional charges from their banks/brokers.
It’s important for shareholders to act promptly to avoid any disruption in their investment during this transition.
About Millicom
Millicom (NASDAQ: TIGO, Stockholm: TIGO_SDB) is a prominent telecommunications provider in Latin America, offering a range of services under TIGO and Tigo Business brands. These include not just mobile and fixed-line communications, but also digital services such as TIGO Money and entertainment options, serving over 46 million customers through a robust fiber-optic network.
Frequently Asked Questions
What is the interim dividend amount that Millicom announced?
The amount of the interim dividend is $1.00 per share.
When will the interim dividend be paid?
The interim dividend is scheduled to be paid on January 10.
What does the SDR delisting imply for shareholders?
Shareholders holding SDRs must convert them into Millicom U.S. Shares to retain their equity following the delisting.
How can SDR holders convert their shares?
SDR holders can convert their shares by submitting valid conversion instructions to SEB by the required deadlines before each conversion tranche.
Are there any fees associated with the conversion process?
Yes, while Millicom covers specific conversion fees, additional fees may apply from the banks or brokers handling the transactions.
