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Millicom (Tigo) Strengthens South American Leadership with USD 380 Million Acquisition of Telefónica Ecuador

1. Millicom acquired Telefónica Ecuador for USD 380 million. 2. Acquisition enhances Millicom's growth and presence in Ecuador's telecom market. 3. Ecuador's economy is stable and dollarized, boosting cash flow resilience. 4. The deal positions Millicom for long-term growth in a growing telecom sector. 5. Regulatory approvals pending for the acquisition transaction.

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Why Bullish?

The strategic acquisition is likely to enhance Millicom's market share and profitability, reflecting optimism akin to previous acquisitions that led to stock price increases.

How important is it?

The acquisition weighs heavily on TIGO’s strategy, affecting future growth and investor sentiment.

Why Long Term?

The acquisition will provide sustained growth opportunities, likely benefiting TIGO's performance in the long run, similar to past growth strategies in Latin America.

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Millicom (Tigo) Strengthens South American Leadership with USD 380 Million Acquisition of Telefónica Ecuador Key Highlights: The acquisition reinforces Millicom’s strategic position and operating scale in Latin America, strengthening its platform for long-term regional growth.The acquisition also enhances Millicom’s geographic diversification, with the addition of Ecuador — a stable, dollarized economy with a supportive macroeconomic outlook — strengthening overall cash flow resilience.Ecuador’s telecom sector shows consistent growth and regulatory momentum, offering a solid runway for long-term expansion and innovation. Luxembourg, June 13, 2025 – Millicom International Cellular S.A. (“Millicom”) has signed a definitive agreement to acquire Telefónica’s telecommunications operations in Ecuador in a transaction valued at USD 380 million. This acquisition aligns with Telefónica’s broader strategy to reshape its portfolio in Latin America and presents Millicom with a strategic opportunity to strengthen its presence in South America, expanding into a stable, dollarized economy with favorable macroeconomic fundamentals. The deal significantly enhances Millicom’s regional footprint and commercial reach, laying the foundation for innovation, digital inclusion, and sustained long-term growth. Ecuador’s telecommunications sector — supported by consistent expansion in mobile and broadband services and an engaged regulatory environment — offers a compelling platform for Millicom to drive digital transformation. Marcelo Benitez, CEO of Millicom, commented: "This acquisition reflects our long-term confidence in Latin America and our commitment to purposeful, sustainable growth. Ecuador offers a dynamic and growing digital market within a stable, dollarized economy, making it a natural fit for Millicom’s strategy. By expanding our presence in South America, we strengthen our platform for innovation, diversification, and long-term value creation.” The transaction is subject to regulatory approvals and other closing conditions. Ecuador Profile: Ecuador has a population of approximately 18.5 million (2025 est.), with a median age of 32.4 and 66% living in urban areas.Dollarized, open economy with resilience across energy, agriculture, and services. The fiscal deficit dropped from 3.5% to 1.4% of GDP in one year, while reserves increased by USD 2.4 billion. Backed by a USD 4 billion IMF facility, Ecuador is strengthening its macroeconomic stability without cutting social spending.IMF and World Bank-supported reforms are enhancing transparency, governance, and private-sector conditions, especially in infrastructure, energy, and telecom.Telefonica Ecuador ranks second in mobile in a fragmented telecom landscape.Mobile and broadband markets show consistent growth: +1.4% mobile, +3.6% fixed broadband.Telecom´s sector demonstrated resilience through recent economic volatility. -END- For further information, please contact: About MillicomMillicom (NASDAQ: TIGO) is a leading provider of fixed and mobile telecommunications services in Latin America. Through its TIGO® and Tigo Business® brands, the company provides 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 March 31, 2025, 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 over 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg with principal executive offices in Doral, Florida.

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