1. Costa Rica's regulator denied LILA and Millicom's merger proposal. 2. The merger was aimed at enhancing technology investments and competitiveness. 3. Companies were surprised by SUTEL's decision despite ongoing dialogue. 4. Next steps being discussed under the combination agreement terms.
The denial of the merger could hinder growth opportunities for LILA, impacting future revenues. Historical examples show that regulatory rejections have led to immediate declines in stock prices for affected companies.
The merger denial significantly affects LILA's strategic plans and growth prospects, making it a critical issue for investors.
The immediate effect will likely be seen in the upcoming trading sessions as investors react to the news.
Liberty Latin America Ltd. ("Liberty Latin America" or "LLA") (NASDAQ:LILA, OTC Link: LILAB)) and Millicom International Cellular S.A. ("Millicom") (NASDAQ:TIGO) confirm that Costa Rica's Board of Telecommunications Superintendency, SUTEL, has issued its final resolution with a decision not to approve the proposed transaction to combine the companies' respective operations in Costa Rica.
The companies remain convinced that the transaction would have enabled greater technology investment, strengthened market competitiveness, and accelerated the expansion of next-generation networks, directly benefiting users and Costa Rica's digital ecosystem.
The outcome was unexpected as both parties maintained an open and ongoing dialogue with SUTEL throughout the review process and developed a comprehensive set of commitments that the companies firmly believe addressed any potential concerns. The companies respectfully disagree with the regulator's decision.
Following the regulatory decision, both parties are working together on next steps per the terms of the combination agreement.
About Liberty Latin America
Visit: www.lla.com
About Millicom
Visit: www.millicom.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20251113599665/en/
For more information, contact:
Liberty Latin America Investor Relations
Soomit Datta, ir@lla.com
Liberty Latin America Corporate Communications
Michael Coakley, llacommunications@lla.com
Millicom Investor Relations
Luca Pfeifer, investors@millicom.com
Millicom Media Relations
Sofia Corral, press@millicom.com