Millicom (Tigo) share repurchase activity
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Insights
An examination of Millicom's recent share repurchase activity indicates a strategic move to optimize capital allocation and potentially enhance shareholder value. The repurchase of 235,772 Swedish Depository Receipts (SDRs) represents a significant capital deployment and the daily average prices paid suggest the company perceives its stock to be undervalued. Share repurchases can be accretive to earnings per share (EPS) by reducing the number of shares outstanding, which in turn may lead to a higher stock price if market sentiment remains constant.
However, the impact on the company's cash reserves and the opportunity cost of not investing in other areas such as expansion or debt reduction must be considered. Investors should assess the company's financial health, including its cash flow generation capabilities, to determine whether the buyback is a prudent use of funds. Furthermore, the timing and volume of these repurchases may provide insights into management's confidence in the company's future prospects and its commitment to delivering returns to shareholders.
From a market perspective, Millicom's repurchase activity can be interpreted as a signal to the market regarding management's perspective on the stock's value. The repurchase program follows a common strategic approach used by firms to signal confidence in the intrinsic value of their stock, which can positively influence investor sentiment. The execution of the repurchase program within the 'Safe Harbour Regulation' ensures compliance with market abuse regulations, providing reassurance to investors regarding the legitimacy of the transactions.
It's also important to analyze the broader telecommunications sector trends and competitive dynamics to understand the potential impact of the repurchase on Millicom's market position. Factors such as technological advancements, regulatory changes and consumer behavior shifts should be evaluated to anticipate how these may affect the company's performance and, consequently, the efficacy of the share repurchase strategy in the long term.
Compliance with the Market Abuse Regulation (MAR) and the Commission Delegated Regulation No 2016/1052 is crucial for listed companies engaging in share repurchase programs. These regulations are designed to prevent market manipulation and insider trading, ensuring that transactions are conducted transparently and during permissible trading windows. By adhering to these regulations, Millicom demonstrates its commitment to corporate governance and legal compliance, which is a positive indicator for risk-averse investors.
Understanding the legal framework surrounding share repurchases is essential for stakeholders to evaluate the legitimacy of the company's market behavior. Non-compliance could result in significant fines and reputational damage, which could adversely affect shareholder value. Therefore, Millicom's adherence to the 'Safe Harbour Regulation' should be noted as an important aspect of their corporate practices.
Millicom (Tigo) share repurchase activity
Luxembourg, January 26, 2024 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 235,772 of its Swedish Depository Receipts (SDRs) between January 22, 2024 and January 26, 2024, as detailed in the table below.
| Trade Date | Number of SDRs repurchased | Daily average price paid* (SEK) | Daily repurchase amount* (SEK) |
| 01/22/2024 | 53,200 | 185.9242 | 9,891,167 |
| 01/23/2024 | 32,200 | 184.6084 | 5,944,390 |
| 01/24/2024 | 46,004 | 183.5313 | 8,443,174 |
| 01/25/2024 | 51,056 | 182.2155 | 9,303,195 |
| 01/26/2024 | 53,312 | 182.6185 | 9,735,757 |
* Excluding commissions
All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 1,113,026 treasury shares as of January 26, 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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FAQ
How many Swedish Depository Receipts (SDRs) did Millicom repurchase between January 22, 2024, and January 26, 2024?
Who carried out the purchases of SDRs on behalf of Millicom?
How many treasury shares does Millicom hold as of January 26, 2024?
What is the total number of shares outstanding in Millicom?
In compliance with which regulations is the repurchase program being executed?
