Millicom (Tigo) share repurchase activity
- None.
- None.
Insights
The recent share repurchase activity by Millicom (Tigo) represents a strategic financial maneuver that can have several implications for the company's valuation and investor sentiment. Share repurchases often signal management's belief that the company's shares are undervalued and such activities can lead to an increase in earnings per share (EPS) by reducing the number of shares outstanding. Additionally, repurchases can improve return on equity (ROE) by decreasing the equity base against which returns are calculated.
However, the impact of such repurchases on the stock price is not always straightforward. While a reduction in the number of shares outstanding can lead to a theoretical increase in the share price, the market's perception of the repurchase's motive and the opportunity cost of not investing the repurchased funds back into the business can also play a significant role. It is crucial to consider the company's financial health, as repurchasing shares at a time of financial constraint can be viewed negatively.
From an industry perspective, Millicom's repurchase activity must be evaluated in the context of the telecommunications sector's current trends and performance. The sector is capital-intensive and companies often face a trade-off between investing in infrastructure and returning capital to shareholders. The decision to repurchase shares could indicate that Millicom is prioritizing shareholder returns over capital expenditures, which could have long-term implications for its competitive positioning and growth prospects.
Moreover, the execution of the share repurchase under the Safe Harbour Regulation suggests compliance with regulatory frameworks designed to prevent market manipulation. It is important to monitor how the repurchase aligns with Millicom's overall capital allocation strategy and whether it reflects a broader industry trend or a company-specific strategic decision.
The mention of the Safe Harbour Regulation in relation to Millicom's share repurchase program is a critical legal detail. This regulation provides specific rules for buy-back programs and stabilisation measures to ensure that they do not contravene market abuse regulations. Companies engaging in repurchase activities under this regulation are afforded certain protections against accusations of market manipulation, provided they adhere to the prescribed trading conditions and limits.
Understanding the legal framework is essential for stakeholders, as it ensures that the repurchase program is conducted transparently and within the bounds of the law. Any deviation from these regulations could expose the company to legal risks and undermine investor confidence. Therefore, the legal adherence to the Safe Harbour Regulation is as important as the financial implications of the repurchase itself.
Millicom (Tigo) share repurchase activity
Luxembourg, December 22, 2023 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 170,724 of its Swedish Depository Receipts (SDRs) between December 19, 2023 and December 22, 2023, as detailed in the table below.
| Trade Date | Number of SDRs repurchased | Daily average price paid* (SEK) | Daily repurchase amount* (SEK) |
| 12/19/2023 | 59,965 | 177.7134 | 10,656,584 |
| 12/20/2023 | 58,800 27,579 24,38027,579 | 184.8159 | 10,867,175 |
| 12/21/2023 | 27,579 | 182.8077 | 5,041,654 |
| 12/22/2023 | 24,380 | 180.6111 | 4,403,299 |
* Excluding commissions
All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 257,817 treasury shares as of December 22, 2023. 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”).
- The maximum level of SDRs that may be repurchased will be the lower of SEK 420 million (approximately USD 40 million) in aggregate purchase price, or 2,000,000 SDRs.
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 September 30, 2023, Millicom, including its Honduras Joint Venture, employed approximately 19,000 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
What is the total number of shares outstanding in Millicom?
What is the purpose of the share repurchase program announced on December 15, 2023?
Who carried out the purchases on Nasdaq Stockholm on behalf of Millicom?
