Millicom (Tigo) share repurchase activity
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Insights
The recent share repurchase activity by Millicom (Tigo) indicates a strategic move to manage capital allocation and return value to shareholders. Share repurchases can often signal management's belief that the company's stock is undervalued. By reducing the number of shares outstanding, earnings per share (EPS) may increase, potentially leading to a higher stock price. However, it is critical to assess this action in the context of the company's overall financial health. Investors should consider the average purchase price in relation to the current market price and historical performance, as well as the impact on the company's cash reserves.
Furthermore, the execution of the buyback under the Safe Harbour Regulation ensures compliance with market abuse regulations, which is intended to prevent market manipulation. The timing and volume of repurchases can affect market perception and therefore, this information is crucial for investors monitoring the stock's liquidity and price stability.
From a market dynamics perspective, the repurchase of Swedish Depository Receipts (SDRs) by Millicom may reflect broader trends in the telecommunications sector. Share buyback programs are common in industries generating significant cash flows, as they offer a mechanism to distribute excess capital to shareholders. It is important to analyze how this repurchase compares with competitors' capital return strategies, such as dividends and other buyback programs.
Investors should also consider the potential signal this sends to the market regarding Millicom's future growth prospects and investment opportunities. A buyback could suggest that the company currently sees fewer high-return investment opportunities and is choosing to allocate capital back to shareholders instead. This action should be evaluated alongside the company's long-term strategic goals and operational performance.
Compliance with the Market Abuse Regulation (MAR) and the Safe Harbour Regulation is a key legal aspect of share repurchase programs. Millicom's adherence to these regulations is designed to ensure transparency and fair dealing, which are critical for maintaining investor confidence. The legal framework allows companies to conduct repurchases within certain parameters to prevent potential abuse of market information that could unfairly influence the stock price.
Investors should be aware of the legal implications of such repurchases and the protections in place. It is also essential to monitor any potential changes in regulatory policies that could affect future repurchase activities and the broader market's response to such corporate actions.
Millicom (Tigo) share repurchase activity
Luxembourg, March 9, 2024 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 50,684 of its Swedish Depository Receipts (SDRs) between March 4, 2024 and March 8, 2024, as detailed in the table below.
| Trade Date | Number of SDRs repurchased | Daily average price paid* (SEK) | Daily repurchase amount* (SEK) |
| 03/04/2024 | 11,150 | 188.2083 | 2,098,523 |
| 03/05/2024 | 12,676 | 183.9785 | 2,332,111 |
| 03/06/2024 | 10,000 | 186.5770 | 1,865,770 |
| 03/07/2024 | 7,320 | 187.3054 | 1,371,076 |
| 03/08/2024 | 9,538 | 187.1100 | 1,784,655 |
* Excluding commissions
All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 957,733 treasury shares as of March,8 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.
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FAQ
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