Millicom (Tigo) share repurchase activity
- None.
- None.
Insights
The recent share repurchase activity by Millicom (Tigo) indicates a strategic move to manage their capital structure and potentially create shareholder value. Repurchasing shares can signal to the market that the company believes its stock is undervalued. It's important for investors to consider the daily average price paid for these shares, as it reflects the company's assessment of the value. Moreover, the repurchase activity can impact the earnings per share (EPS) metric by reducing the number of shares outstanding, which may lead to a higher EPS if net income remains constant.
Investors should also be aware of the Safe Harbour Regulation, which provides guidelines ensuring that share buybacks are not misused for market manipulation. The fact that Millicom's repurchase program is consistent with these provisions can reassure investors about the legitimacy of the transactions. However, it is crucial to analyze the company's overall financial health to ensure that the repurchase does not negatively impact its liquidity or leverage ratios. In the long term, the effectiveness of this program in enhancing shareholder value will largely depend on the company's operational performance and market conditions.
From a market perspective, Millicom's repurchase of Swedish Depository Receipts (SDRs) might be perceived as a positive indicator, suggesting that the company is confident in its future prospects. The repurchase activity takes place in the context of a broader market where share buybacks have become a common tool for companies to return capital to shareholders and manage their stock prices. The impact on the stock market will depend on investor perception of the buyback's intent and the company's future growth potential.
It is also pertinent to consider the sector-specific trends in telecommunications, as they could influence the effectiveness of such financial maneuvers. For instance, if the sector is expected to experience growth due to technological advancements or regulatory changes, the timing of the buyback could be particularly advantageous. Conversely, if the sector faces headwinds, the company may need to justify the allocation of capital towards buybacks rather than investment in growth opportunities.
When analyzing the legal implications of Millicom's share repurchase activity, the adherence to the Market Abuse Regulation (MAR) and the Safe Harbour Regulation is paramount. These regulations are designed to prevent market abuse and ensure transparency in financial transactions. By conducting the repurchase within these frameworks, Millicom demonstrates compliance with European Union regulations, which could be seen as a commitment to maintaining a fair trading environment.
For stakeholders, the legal adherence also mitigates the risk of regulatory penalties that could arise from non-compliant buyback activities. However, it is essential to monitor any future regulatory changes that may affect the legal landscape of share repurchases and assess how such changes might impact the company's strategy and the interests of its shareholders.
Millicom (Tigo) share repurchase activity
Luxembourg, February 16, 2024 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 36,250 of its Swedish Depository Receipts (SDRs) between February 12, 2024 and February 16, 2024, as detailed in the table below.
| Trade Date | Number of SDRs repurchased | Daily average price paid* (SEK) | Daily repurchase amount* (SEK) |
| 02/12/2024 | 7,250 | 169.4084 | 1,228,211 |
| 02/13/2024 | 7,250 | 168.5239 | 1,221,798 |
| 02/14/2024 | 7,250 | 165.6989 | 1,201,317 |
| 02/15/2024 | 7,250 | 164.8833 | 1,195,404 |
| 02/16/2024 | 7,250 | 165.6579 | 1,201,020 |
* Excluding commissions
All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 1,595,370 treasury shares as of February 16, 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 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
How many Swedish Depository Receipts (SDRs) did Millicom repurchase?
Where were the repurchases made?
How many treasury shares does Millicom hold after the repurchases?
What is the total number of shares outstanding in Millicom?
Under which regulations is the repurchase program being executed?
