Millicom (Tigo) share repurchase activity
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Insights
The recent share repurchase activity by Millicom indicates a strategic move to manage capital allocation and signal confidence to the market. Share buybacks can often lead to an appreciation in stock price, as they effectively reduce the number of shares outstanding, potentially increasing earnings per share (EPS). This action may be perceived positively by investors who see the buyback as a sign that the company believes its shares are undervalued.
Analysis of the average prices paid for the Swedish Depository Receipts (SDRs) suggests a stable or slightly increasing expenditure over the course of the repurchase days, which could indicate a steady or growing investor confidence in the stock, or a strategic move by Millicom to support the share price. The impact of such repurchase activities on the stock market is generally nuanced and must be considered in the context of overall market conditions and investor sentiment.
From a financial perspective, Millicom's decision to repurchase shares can affect various financial metrics. By reducing the number of shares outstanding, the company's return on equity (ROE) may improve, as there is less equity over which profits are spread. This can make the company appear more efficient in generating profits from its equity base. However, it is crucial to monitor the company's leverage ratios post-buyback, as using debt to fund repurchases can increase financial risk.
The disclosed information that Millicom now holds 512,056 treasury shares provides insight into the company's potential future actions, such as using these shares for employee compensation plans or retiring the shares to further reduce the share count. The long-term implications of these treasury shares should be evaluated in the context of the company's overall strategy and capital structure.
It is significant to note that Millicom's share repurchase program is being executed in accordance with Article 5 of the Market Abuse Regulation (MAR) and the Commission Delegated Regulation No 2016/1052, which is also known as the 'Safe Harbour Regulation'. This legal framework provides guidelines for buyback programs to ensure they do not violate market abuse laws and are conducted in a transparent manner. Compliance with these regulations is critical to maintain investor trust and avoid legal repercussions.
The reference to these regulations in the context of the share repurchase activity underlines the importance of legal compliance in financial transactions and the need for companies to adhere strictly to regulatory standards to prevent market manipulation and maintain orderly trading conditions.
Millicom (Tigo) share repurchase activity
Luxembourg, January 5, 2024 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 142,239 of its Swedish Depository Receipts (SDRs) between January 2, 2024 and January 5, 2024, as detailed in the table below.
| Trade Date | Number of SDRs repurchased | Daily average price paid* (SEK) | Daily repurchase amount* (SEK) |
| 01/02/2024 | 37,470 | 184.7685 | 6,923,276 |
| 01/03/2024 | 46,875 | 184.3356 | 8,640,731 |
| 01/04/2024 | 29,895 | 185.9382 | 5,558,622 |
| 01/05/2024 | 27,999 | 190.7456 | 5,340,686 |
* Excluding commissions
All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 512,056 treasury shares as of January 5, 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.
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