Millicom (Tigo) share repurchase activity
- None.
- None.
Insights
The share repurchase activity by Millicom represents a strategic move to manage its capital structure and potentially signal confidence in the company's value. From a market research perspective, repurchasing shares can often be interpreted as a positive signal to the market, indicating that the company believes its stock is undervalued. This can lead to an uptick in investor confidence and a possible increase in the stock price.
However, the impact on the stock market also depends on the scale of the buyback relative to the company's overall market capitalization. With Millicom holding 1,013,486 treasury shares post-purchase out of a total of 172,096,305 shares outstanding, the buyback is not significantly large when compared to the total number of shares. Therefore, while the action is positive, its impact may be relatively muted in the broader market context.
Analysing the financial implications of Millicom's repurchase activity requires an examination of the company's liquidity and cash flow. The repurchase program uses the company's capital to buy back shares, which could be seen as an alternative to investing in growth opportunities or paying down debt. It's essential to assess whether this capital deployment aligns with the company's long-term strategic goals and financial health.
Investors should consider the daily average price paid for the shares and the total repurchase amount, as these figures provide insight into the company's valuation metrics. The repurchase at prices ranging from 199.55 to 205.24 SEK per SDR suggests a targeted investment at a price range Millicom deems fair. The exclusion of commissions in the disclosed figures also points to a transparent reporting of the repurchase costs.
It's important to note that Millicom's share repurchase program is being executed in accordance with the Market Abuse Regulation (MAR) and the Safe Harbour Regulation. This compliance ensures that the buybacks are conducted within legal boundaries and are protected from potential claims of market manipulation. The adherence to these regulations is critical for maintaining investor trust and avoiding legal repercussions.
Additionally, the detailed disclosure of the repurchase activity, including the breakdown of transactions, reflects the company's commitment to transparency. For stakeholders, such compliance and openness are key factors when assessing the governance quality of a company. It's also indicative of a well-managed approach to capital distribution policies.
Millicom (Tigo) share repurchase activity
Luxembourg, March 22, 2024 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 25,625 of its Swedish Depository Receipts (SDRs) between March 18, 2024 and March 22, 2024, as detailed in the table below.
| Trade Date | Number of SDRs repurchased | Daily average price paid* (SEK) | Daily repurchase amount* (SEK) |
| 03/18/2024 | 1,803 | 199.5575 | 359,802 |
| 03/19/2024 | 5,922 | 199.5623 | 1,181,808 |
| 03/20/2024 | 10,400 | 200.6243 | 2,086,493 |
| 03/21/2024 | 5,000 | 202.0162 | 1,010,081 |
| 03/22/2024 | 2,500 | 205.2470 | 513,118 |
* Excluding commissions
All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 1,013,486 treasury shares as of March,22 2024. The total number of shares outstanding in Millicom is 172,096,305.
The repurchase program is being executed consistent with the provisions of Article 5 of MAR and the Commission Delegated Regulation No 2016/1052 (“Safe Harbour Regulation”). A full breakdown of the transactions is attached to this press release. For information about all transactions carried out under the repurchase program, refer to Nasdaq Stockholm’s website: http://www.nasdaqomx.com/transactions/markets/nordic/corporate-actions/stockholm/repurchases-of-own-shares
For further information, please contact:
| Press: Sofía Corral, Communications Director press@millicom.com | Investors: 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 December 31, 2023, Millicom, including its Honduras Joint Venture, employed approximately 16,500 people and provided mobile and fiber-cable services through its digital highways to more than 45 million customers, with a fiber-cable footprint over 13 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg.
Attachment
FAQ
How many Swedish Depository Receipts (SDRs) did Millicom repurchase?
What was the range of the daily average price paid for the repurchased SDRs?
How many treasury shares does Millicom hold after the repurchase?
Who carried out the purchases on Nasdaq Stockholm for Millicom?
Under which regulations is the repurchase program being executed?
