Millicom (Tigo) comments on shareholder communication

Rhea-AI Summary

Millicom (Tigo) has received a non-binding expression of interest from shareholder Atlas Luxco S.à.r.l. regarding a potential all-cash tender offer for all outstanding shares at $24 per share. This follows Atlas's earlier press release and Form 13D filing. The Board of Directors will review any forthcoming offer, but there is no certainty of a transaction occurring, nor clarity on its terms, timing, or form.

Positive

• Potential all-cash tender offer at $24 per share by Atlas Luxco S.à.r.l.
• Expression of interest signals potential future investment and liquidity opportunities for shareholders.

Negative

• No certainty that a transaction will materialize.
• Unclear terms, timing, and form of any potential transaction.
• Non-binding nature of the expression of interest adds uncertainty.

Insights

Financial Analyst

The announcement that Atlas Luxco is exploring financing options for a potential all-cash tender offer for all Millicom shares at US$24 per share is significant. This proposal represents a premium over Millicom's current trading price, which can be appealing to shareholders. If the tender offer proceeds, it would provide shareholders with a clear exit strategy at a specified price, potentially higher than the market value. However, the non-binding nature of the expression of interest means there is still a significant degree of uncertainty.

Key considerations: The offer's success hinges on Atlas securing the necessary financing. Shareholders should monitor further announcements closely as the Board of Directors evaluates the offer. In the short term, the news could lead to increased volatility in Millicom's stock price as the market reacts to the potential offer.

Long-term implications: If the tender offer is successful, it could lead to a significant shift in Millicom's ownership structure, possibly impacting future strategic decisions and operations. Investors should consider the potential for changes in the company's strategic direction and management.

Market Research Analyst

This potential tender offer by Atlas Luxco is an important event in the telecommunications sector. Such moves can often signal underlying market confidence in the target company's strategic outlook and market position. Millicom operates in emerging markets and a successful acquisition could enhance the acquiring entity's presence in these regions.

Industry context: In the telecommunications sector, consolidation is a common strategy to achieve economies of scale and expand market reach. This offer, if realized, could be viewed as part of a broader trend towards consolidation in the industry.

Investor perspective: Retail investors should be aware that while the immediate premium offered is attractive, the long-term value creation post-acquisition can vary. The integration process and the strategic execution by the new owners will be important to watch.

Millicom (Tigo) comments on shareholder communication

Luxembourg, May 23, 2024 – The Board of Directors of Millicom International Cellular S.A. (“Millicom”) confirms that it received today a non-binding expression of interest from one of its shareholders, Atlas Luxco S.à.r.l (“Atlas”).  Consistent with the prior press release filed this morning by Atlas, and with the Form 13D filed by Atlas later today, the letter indicates that Atlas is exploring financing options to support a potential all-cash tender offer for all outstanding shares in Millicom at a price of US$24 per share, and its SEK equivalent per SDR.  

The Board of Directors will carefully review any offer, should one be made.  There is no certainty that a transaction will materialize nor as to the terms, timing or form of any potential transaction.

-END-

For further information, please contact:

Press:	Investors:
Sofia Corral, Director Corporate Communications press@millicom.com	Michel Morin, VP Investor Relations investors@millicom.com

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 March 31, 2024, Millicom, including its Honduras Joint Venture, employed approximately 15,500 people, and provided mobile and fiber-cable services through its digital highways to more than 45 million customers, with a fiber-cable footprint over 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg.

FAQ

What did Atlas Luxco S.à.r.l. propose to Millicom?

Atlas Luxco S.à.r.l. expressed a non-binding interest in a potential all-cash tender offer for all outstanding shares of Millicom at $24 per share.

Is there a confirmed tender offer for Millicom shares?

No, there is no confirmed tender offer. The expression of interest is non-binding and there is no certainty that a transaction will occur.

What price is proposed for Millicom shares by Atlas Luxco S.à.r.l.?

The proposed price is $24 per share.

When did Millicom receive the expression of interest from Atlas Luxco S.à.r.l.?

Millicom received the expression of interest on May 23, 2024.

What are the next steps for Millicom regarding the offer from Atlas Luxco S.à.r.l.?

The Board of Directors will carefully review any offer, should one be made, but there is no certainty regarding the outcome.