Millicom (Tigo) share repurchase activity
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Insights
Share repurchase programs are a signal to the market about a company's liquidity and confidence in its own stock. Millicom's recent activity, where they repurchased a specific number of SDRs, indicates a strategic move to manage capital structure and potentially boost shareholder value. The repurchase at varying prices over several days reflects both market conditions and the company's approach to timing their buybacks. Investors often view repurchase activities as a positive sign, as it may suggest that the company believes the stock is undervalued.
However, it is essential to consider the overall impact on the company's financial health. The repurchase uses the company's cash reserves, which could have been allocated to other growth opportunities or debt reduction. The long-term benefits of such programs depend on the company's ability to generate sufficient cash flow to offset the cost of these buybacks.
From a financial perspective, the key figures to analyze in Millicom's share repurchase are the total repurchase amount and the average price paid. These details offer insights into the company's capital allocation decisions. Investors should look at the repurchase in the context of the company's overall market capitalization and compare it to the industry average to gauge the scale of the buyback.
Additionally, the repurchase's effect on earnings per share (EPS) is noteworthy. By reducing the number of shares outstanding, EPS may increase, which can be attractive to investors. However, it's important to scrutinize whether this EPS growth is supported by actual operational performance or merely a financial engineering effect.
The execution of Millicom's share repurchase program within the bounds of Article 5 of MAR and the Safe Harbour Regulation is crucial. These regulations are designed to prevent market abuse and ensure transparency in financial transactions. Compliance with these rules is important for maintaining investor trust and avoiding legal repercussions. Investors should be reassured by Millicom's adherence to these regulations, as it reflects the company's commitment to lawful and ethical business practices.
Millicom (Tigo) share repurchase activity
Luxembourg, March 15, 2024 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 30,128 of its Swedish Depository Receipts (SDRs) between March 11, 2024 and March 15, 2024, as detailed in the table below.
| Trade Date | Number of SDRs repurchased | Daily average price paid* (SEK) | Daily repurchase amount* (SEK) |
| 03/11/2024 | 9,407 | 186.2681 | 1,752,224 |
| 03/12/2024 | 10,000 | 187.5272 | 1,875,272 |
| 03/13/2024 | 7,556 | 188.0249 | 1,420,716 |
| 03/14/2024 | 3,165 | 190.4206 | 602,681 |
* Excluding commissions
All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 987,861 treasury shares as of March,15 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
How many Swedish Depository Receipts did Millicom repurchase?
When were the share repurchases made?
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In compliance with which regulations is the repurchase program being executed?
