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Millicom (Tigo) and Telefonica sign definitive sale-purchase agreement in Colombia

1. Millicom acquires Telefonica's 67.5% stake in Coltel for $400 million. 2. Total adjusted purchase price as of September 30, 2024, estimated at $362 million. 3. The deal aims to enhance Colombia's digital telecom sector. 4. Millicom plans to buy an additional 50% stake in UNE. 5. CEO emphasizes commitment to expanding connectivity and digital transformation.

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FAQ

Why Bullish?

This acquisition bolsters TIGO's market position and potential revenue in Colombia, aligning with trends seen in similar telecom mergers where service expansion led to stock value increases. For instance, AT&T's acquisition of Time Warner boosted its service portfolio and ultimately its stock prices.

How important is it?

The acquisition significantly enhances TIGO’s telecom capabilities and market share in Colombia, with substantial implications for future revenue and strategic positioning, thereby influencing investor sentiment positively.

Why Long Term?

The completion and integration of the Coltel acquisition will take time to reflect on TIGO’s financials, similar to how Verizon's merger with Vodafone took a couple of years to show stable growth post-integration.

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TEFVZT
Millicom (Tigo) and Telefonica sign definitive sale-purchase agreement in Colombia Luxembourg, March 12, 2025 – Pursuant to the announcement on July 31, 2024, Millicom and Telefonica have entered into a definitive agreement for the acquisition by Millicom of Telefonica’s controlling 67.5% equity stake in Coltel, subject to closing conditions including regulatory approvals. Millicom has also agreed to offer to purchase the remaining 32.5% of Coltel equity owned by La Nación and other investors at the same purchase price per share offered to Telefonica. In line with the prior announcement, the purchase price of $400 million is subject to customary adjustments for net debt evolution, working capital and changes in foreign exchange rates, and as of September 30, 2024, would be $362 million. The proposed combined entity would rejuvenate Colombia's telecom sector by forming a robust telecom entity with the necessary scale and financial capacity to support the significant network and spectrum investments required to achieve Colombia's ambitious digital inclusion objectives.  Millicom also reiterates its offer to acquire its partner’s 50% stake in UNE for cash at a price per share derived from applying a valuation multiple comparable to the one implied by the Coltel acquisition.  Millicom CEO Marcelo Benitez commented, “This transaction strengthens our presence in Colombia, and with this strategic move, Millicom reaffirms its ongoing commitment to expanding connectivity and coverage, accelerating digital transformation, and actively contributing to Colombia's continued growth and competitiveness.” -END- For further information, please contact About Millicom Millicom (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) is a leading provider of fixed and mobile telecommunications services in Latin America. Through our TIGO® and Tigo Business® brands, we provide a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, high-speed data, voice, and business-to-business solutions such as cloud and security. As of December 31, 2024, Millicom, including its Honduras Joint Venture, employed approximately 14,000 people, and provided mobile and fiber-cable services through its digital highways to more than 46 million customers, with a fiber-cable footprint of about 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg. Regulatory Statement Certain of this information was, prior to this release, inside information and is information that Millicom is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out above, at 23.50 CET on March 12, 2025.

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