Millicom (Tigo) share repurchase activity
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Insights
The recent share repurchase activity by Millicom represents a significant financial maneuver that can have a variety of implications for the company's valuation and shareholder equity. Share repurchases are often viewed as a signal that a company's management believes the shares are undervalued. By reducing the number of shares outstanding, the earnings per share (EPS) metric may increase, potentially leading to a higher stock price. Additionally, repurchases can be a method of returning value to shareholders, comparable to dividends but offering tax advantages in some jurisdictions.
It is important to analyze the daily average price paid for the repurchased shares, as this reflects the company's cost of equity during the period and could impact the overall financial health if the repurchased shares were significantly overvalued. Investors and analysts should monitor the company's leverage and liquidity ratios post-repurchase to ensure that the buyback does not adversely affect the company's ability to finance operations and growth.
From a market perspective, Millicom's share repurchase activity can be indicative of broader market trends or sector-specific movements. The telecommunications sector, where Millicom operates, is typically capital-intensive with steady cash flows, which can support share repurchase programs. The repurchase activity should be evaluated in the context of the company's market performance and sector outlook. If the sector is expected to experience growth, the repurchase could be well-timed to capitalize on future valuation increases.
Furthermore, the impact of the buyback on the company's market capitalization and its position relative to competitors should be considered, as well as any potential signaling effect the repurchase may have on investor sentiment towards both Millicom and the sector.
The execution of the share repurchase program must be scrutinized in the context of regulatory compliance. Millicom's adherence to the Market Abuse Regulation (MAR) and the Commission Delegated Regulation No 2016/1052, known as the Safe Harbour Regulation, is crucial to avoid any legal repercussions. These regulations provide a legal framework for share buybacks to occur without constituting market manipulation.
It is also essential to ensure that the repurchase transactions are conducted transparently and that all necessary disclosures are made to the market. The Safe Harbour provisions allow for certain trading activities to take place without being considered as market abuse, provided they are executed within predefined conditions, including volume and price restrictions. Companies engaging in such activities must closely monitor their transactions to remain within the legal parameters set forth by these regulations.
Millicom (Tigo) share repurchase activity
Luxembourg, January 19, 2024 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 228,599 of its Swedish Depository Receipts (SDRs) between January 15, 2024 and January 19, 2024, as detailed in the table below.
| Trade Date | Number of SDRs repurchased | Daily average price paid* (SEK) | Daily repurchase amount* (SEK) |
| 01/15/2024 | 47,000 | 191.7895 | 9,014,107 |
| 01/16/2024 | 56,148 | 188.8929 | 10,605,959 |
| 01/17/2024 | 59,791 | 184.5259 | 11,032,988 |
| 01/18/2024 | 18,700 | 187.4838 | 3,505,947 |
| 01/19/2024 | 46,960 | 186.7450 | 8,769,545 |
* Excluding commissions
All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 877,254 treasury shares as of January 19, 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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