Millicom (Tigo) completes multi-year Africa exit with Tanzania sale

Rhea-AI Summary

Millicom (TIGO) has successfully completed the sale of its operations in Tanzania as part of its strategy to exit the African market. This transaction, finalized on April 5, 2022, involves a consortium led by Axian, which has taken on ownership, debt, and other obligations of the business. Millicom received approximately $100 million in net cash from this deal, marking the conclusion of its multi-year plan to divest from Africa and focus on expanding in Latin America. CEO Mauricio Ramos emphasized the company’s commitment to improving broadband services in the region.

Positive

• Received approximately $100 million in net cash from the sale.
• Completing the multi-year divestment allows focus on Latin American markets.

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• None.

Millicom (Tigo) completes multi-year Africa exit with Tanzania sale

Luxembourg, April 5, 2022 – Millicom International Cellular S.A. (NASDAQ: TIGO) announces that it has completed the transaction announced on April 19, 2021 for the sale of its operation in Tanzania to a consortium led by Axian, a pan-African group. In accordance with the terms of the sale, Axian has assumed ownership of the business, including its debt and other obligations, and Millicom has received net cash consideration of approximately $100 million. The transaction completes Millicom’s multi-year plan to divest its African operations and associated obligations and liabilities and to focus on its Latin America markets.

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 have completed the divestiture of our African businesses, we close a chapter in our history and open another solely focused on the Latin American region.”

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For further information, please contact

Press: Karim Lesina, EVP Chief External Affairs Officer +1-786-906-0980 press@millicom.com   Yocasta Valdez, Group Manager Digital Media & Communications +1-305-929-5417 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 fixed and mobile telecommunications services dedicated to emerging markets in Latin America and Africa. 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, 2021, Millicom employed approximately 21,000 people and provided mobile services through its digital highways to around 58 million customers, with a fiber-cable footprint of more than 12 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg. For more information, visit: millicom.com. Connect with Millicom on Twitter, Instagram, Facebook and LinkedIn. 

 

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• Millicom (Tigo) completes multi-year Africa exit with Tanzania sale

FAQ

What is the significance of Millicom's sale of its Tanzania operations?

The sale completes Millicom's multi-year plan to exit its African operations, allowing the company to focus on growth in Latin America.

How much cash did Millicom receive from the Tanzania sale?

Millicom received approximately $100 million in net cash from the sale of its Tanzanian operations.

When was the transaction for the sale of Millicom's Tanzania operations completed?

The transaction was completed on April 5, 2022.

Who purchased Millicom's operation in Tanzania?

A consortium led by Axian purchased Millicom's operations in Tanzania.

What does Millicom plan to focus on after selling its African operations?

After the sale, Millicom plans to concentrate its efforts on expanding its business in the Latin American market.