Millicom (Tigo) share repurchase activity
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Insights
The recent share repurchase activity by Millicom is a strategic financial maneuver that can have several implications on the company's valuation and shareholder value. By repurchasing its Swedish Depository Receipts (SDRs), Millicom is reducing the number of shares available in the market, which could potentially increase the earnings per share (EPS) and, consequently, the stock price. This action often signals to the market that the company believes its stock is undervalued and is a good use of its cash reserves.
Investors should consider the total repurchase amount in relation to the company's overall market capitalization and cash flow. The repurchase activity, when done at a price perceived to be below the intrinsic value of the company, can be accretive to shareholder value. However, if the repurchases are made at a premium, it could indicate a lack of profitable reinvestment opportunities within the company or an attempt to prop up the share price artificially.
From a market perspective, Millicom's repurchase activity must be analyzed in the context of the telecommunications sector and broader market trends. Share repurchase programs are common in industries generating significant free cash flow, as they provide a mechanism for returning value to shareholders. The timing and scale of the repurchases can also reflect the company's confidence in its financial stability and future growth prospects.
Market participants will be monitoring the impact of these repurchases on the company's leverage, as well as the opportunity cost of not investing in other areas such as research and development or strategic acquisitions. The repurchase activity could be a response to sector-specific challenges, such as regulatory changes, competition, or technological advancements that require companies to adapt their capital allocation strategies.
It is essential to note that Millicom's share repurchase program is executed in accordance with Article 5 of the Market Abuse Regulation (MAR) and the Safe Harbour Regulation. These regulations ensure that the repurchases are conducted in a manner that does not manipulate the market. The adherence to the Safe Harbour rules provides a degree of legal protection against allegations of market abuse. Compliance with these regulations is critical for maintaining investor confidence and avoiding potential legal sanctions.
The detailed disclosure of the repurchase transactions, including the number of SDRs repurchased and the average price paid, reflects transparency and is a regulatory requirement that helps maintain a fair market. Stakeholders should be aware that such disclosures are intended to provide clarity on the company's actions and prevent any potential misinterpretation of the buyback program's intent.
Millicom (Tigo) share repurchase activity
Luxembourg, March 1, 2024 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 52,576 of its Swedish Depository Receipts (SDRs) between February 26, 2024 and March 1, 2024, as detailed in the table below.
| Trade Date | Number of SDRs repurchased | Daily average price paid* (SEK) | Daily repurchase amount* (SEK) |
| 02/26/2024 | 7,250 | 161.5380 | 1,171,151 |
| 02/27/2024 | 5,006 | 165.5555 | 828,771 |
| 02/28/2024 | 20,000 | 185.0507 | 3,701,014 |
| 02/29/2024 | 8,920 | 192.3542 | 1,715,799 |
| 03/01/2024 | 11,400 | 190.8338 | 2,175,505 |
* Excluding commissions
All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 907,049 treasury shares as of March,1 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.
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FAQ
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