Millicom signs agreements to conclude Africa divestiture program
Millicom has signed agreements to divest its operations in Tanzania and its stake in the AirtelTigo joint venture in Ghana, completing its African divestiture program. The Tanzania sale is to a consortium led by Axian, while the Ghana transaction involves a handover to the Government of Ghana. Millicom will incur a $25 million charge from the Ghana deal. This strategic shift emphasizes Millicom's focus on enhancing its services in Latin America, where demand for broadband is growing.
- Completion of African divestiture aligns with Millicom's focus on Latin America, potentially improving financial performance in a growing market.
- The sale to a consortium experienced in the region indicates a stable transition and a strategic partnership.
- Millicom will incur a $25 million charge due to the transfer of AirtelTigo, impacting short-term financial results.
Millicom signs agreements to conclude Africa divestiture program
Luxembourg, April 19, 2021 – Millicom International Cellular S.A. (“Millicom”) announces that it has signed agreements for the sale of its operations in Tanzania and for its stake in the AirtelTigo joint venture in Ghana. Once closed, the transactions will complete Millicom’s multi-year plan to divest its African operations and focus on its Latin America markets.
In Tanzania, Millicom has agreed to sell its entire operations to a consortium led by Axian, a pan-African group that was part of the consortium that acquired Millicom’s operations in Senegal in 2018.
In Ghana, Millicom along with its joint venture partner, Bharti Airtel Limited, have signed a definitive agreement for the transfer of AirtelTigo to the Government of Ghana. Millicom will take a
Millicom CEO, Mauricio Ramos, commented: “Today Tigo is a leading provider of broadband services to consumers, businesses and governments in Latin America, where penetration and data speeds remain low by the standards of more mature markets. Through our investment-led strategy, we are bringing reliable high-speed mobile and fixed broadband to the communities we serve in the region. With today’s announcement that we are divesting our remaining African businesses, we close a chapter in our history and open another solely focused on the Latin American region.”
Financial details were not disclosed, and completion of each transaction is subject to customary closing conditions, including regulatory approvals.
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For further information, please contact:
| Press: Vivian Kobeh, Corporate Communications Director +1 786-628-5300 press@millicom.com | Investors: Michel Morin, VP Investor Relations +1 786-628-5270 investors@millicom.com Sarah Inmon, Director Investor Relations +1 786-628-5303 investors@millicom.com |
About Millicom
Millicom (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) is a leading provider of cable and mobile services dedicated to emerging markets in Latin America and Africa. Millicom sets the pace when it comes to providing high-speed broadband and innovation around The Digital Lifestyle® services through its principal brand, TIGO. As of December 31, 2020, Millicom operating subsidiaries and joint ventures employed more than 21,000 people and provided mobile services to approximately 55 million customers, with a cable footprint of more than 12 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg.
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