Millicom (Tigo) share repurchase activity

Rhea-AI Summary

Millicom (Tigo) repurchased 259,845 of its Swedish Depository Receipts (SDRs) between February 5, 2024, and February 9, 2024, as part of its share repurchase program. The purchases were made on Nasdaq Stockholm at varying daily average prices. After the repurchase, Millicom holds 1,559,120 treasury shares, with a total of 172,096,305 shares outstanding.

Insights

Market Research Analyst

Share repurchase programs often signal a company's confidence in its own financial stability and future prospects. In the case of Millicom, the repurchase of 259,845 Swedish Depository Receipts (SDRs) represents a significant investment back into the company, potentially indicating an undervaluation of shares or a strategic move to consolidate ownership, which could lead to an earnings per share (EPS) increase for remaining shareholders. The action of repurchasing shares on Nasdaq Stockholm, particularly through a well-known financial institution like Citigroup Global Markets Limited, underscores the structured approach to the buyback, adhering to market regulations.

However, the impact of such repurchases on the stock price is not always immediate or predictable. While it can be seen as a positive move, investors must also consider the opportunity cost of the cash used for the repurchase. The funds could alternatively have been used for investments in growth opportunities or debt reduction. Additionally, the long-term effects are contingent on the company's ability to sustain its profitability and effectively deploy its remaining capital.

Financial Analyst

From a financial perspective, the repurchase activity must be evaluated in the context of Millicom's overall capital allocation strategy. The average prices paid for the SDRs across the trading days suggest a stable market perception during that period. The disclosure of the repurchase amounts and prices provides transparency, which is beneficial for investors assessing the fair value of the company's stock. The repurchase activity, when executed under the Safe Harbour Regulation, is designed to provide protections against market abuse and ensure that the transactions do not artificially inflate the stock price.

It is crucial to analyze the company's balance sheet to understand the impact of the treasury shares on share liquidity and capital structure. Investors should also assess the company's past performance and future earnings potential to determine whether the share repurchase is likely to be accretive to shareholder value in the long run. The share buyback could be a positive signal to the market, but it should not be the sole factor in investment decisions, as it is necessary to consider the broader economic environment and sector-specific challenges.

Millicom (Tigo) share repurchase activity

Luxembourg, February 9, 2024 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 259,845 of its Swedish Depository Receipts (SDRs) between February 5, 2024 and February 9, 2024, as detailed in the table below.

Trade Date	Number of SDRs repurchased	Daily average price paid* (SEK)	Daily repurchase amount* (SEK)
02/05/2024	52,500	175.0302	9,189,086
02/06/2024	53,124	171.6505	9,118,761
02/07/2024	53,700	171.0714	9,186,534
02/08/2024	50,260	170.0944	8,548,945
02/09/2024	50,261	170.5138	8,570,194

* Excluding commissions

All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 1,559,120 treasury shares as of February 9, 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.

Attachment

• Week ending 02-09-24

FAQ

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

Millicom repurchased 259,845 SDRs between February 5, 2024, and February 9, 2024.

Where were the purchases of SDRs made?

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

How many treasury shares does Millicom hold after the repurchase?

Millicom holds 1,559,120 treasury shares as of February 9, 2024.

What is the total number of shares outstanding in Millicom?

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

Under what regulations is the repurchase program being executed?

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').