Millicom (Tigo) share repurchase activity

Rhea-AI Summary

Millicom (Tigo) repurchased 23,831 of its Swedish Depository Receipts (SDRs) between March 25, 2024, and March 28, 2024, as part of the share repurchase program. The purchases were made at varying daily average prices, totaling a repurchase amount of SEK 4,208,206. Following the transactions, Millicom holds 705,905 treasury shares out of 172,096,305 outstanding shares.

Insights

Financial Analyst

Share repurchase programs are a common method for companies to return value to shareholders, potentially signaling confidence in the company's financial health and future prospects. The action taken by Millicom to repurchase its Swedish Depository Receipts (SDRs) can be seen as an attempt to manage its capital structure more effectively and possibly to support the SDR price in the market. By reducing the number of shares outstanding, earnings per share (EPS) may increase, which could be viewed favorably by investors.

It is also important to note that the repurchase was executed within the Safe Harbour Regulation, ensuring compliance with market abuse regulations. Investors may perceive this as a positive governance practice, reflecting the company's commitment to transparency and legal compliance. The execution of the repurchase through Citigroup Global Markets Limited indicates reliance on established financial institutions for conducting market operations, which can add a layer of trust for the stakeholders.

However, it's essential to consider the opportunity cost of such repurchases; funds used for this purpose are not being invested in growth opportunities or other potentially value-adding activities. Stakeholders should weigh the immediate positive effects of share repurchases against the long-term strategic needs of the company.

Market Research Analyst

From a market perspective, Millicom's repurchase activity could be interpreted as a signal to the market regarding the management's perspective on the stock's valuation. If the leadership believes the stock is undervalued, repurchasing shares could be a strategic move to capitalize on this. Observing the daily average price paid for the SDRs, there is a slight increase over the days, which might indicate a stable or increasing demand for the shares, or reflect broader market trends.

Investors often look at repurchase activities as a sign of a company's robust internal cash flow, assuming that the company would not buy back shares if it anticipated liquidity issues in the near future. This could potentially affect the stock's performance positively. Nevertheless, the market's reaction to share repurchases can vary and other factors such as industry performance, economic conditions and company fundamentals remain critical in determining the stock's future trajectory.

Millicom (Tigo) share repurchase activity

Luxembourg, March 28, 2024 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 23,831 of its Swedish Depository Receipts (SDRs) between March 25, 2024 and March 28, 2024, as detailed in the table below.

Trade Date	Number of SDRs repurchased	Daily average price paid* (SEK)	Daily repurchase amount* (SEK)
03/25/2024	4,000	211.0299	844,120
03/26/2024	8,000	210.0935	1,680,748
03/27/2024	6,000	210.1790	1,261,074
03/28/2024	5,831	216.9927	1,265,284

* Excluding commissions

All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 705,905 treasury shares as of March,28 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

• Week ending 03-28-24

FAQ

How many Swedish Depository Receipts (SDRs) did Millicom repurchase?

Millicom repurchased 23,831 of its SDRs between March 25, 2024, and March 28, 2024.

What was the total repurchase amount in SEK?

The total repurchase amount was SEK 4,208,206.

How many treasury shares does Millicom hold after the repurchase?

Millicom holds 705,905 treasury shares as of March 28, 2024.

What is the total number of outstanding shares in Millicom?

The total number of outstanding shares in Millicom is 172,096,305.

Where were the purchases carried out?

All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets on behalf of Millicom.