Millicom (Tigo) share repurchase activity
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Insights
The recent share repurchase activity by Millicom (Tigo) represents a strategic move that can influence the company's stock price and shareholder value. Share repurchases are often interpreted as a signal that a company's leadership believes the stock is undervalued. By reducing the number of shares outstanding, earnings per share (EPS) could potentially increase, making the remaining shares more valuable.
In the case of Millicom, the repurchase of 136,599 Swedish Depository Receipts (SDRs) could be seen as a commitment to returning value to shareholders. The activity could also indicate that the company is generating sufficient cash flow to fund the repurchase, which could be a positive sign of financial health. However, it's also crucial to consider the opportunity cost of such a buyback. The funds used could alternatively be invested in growth opportunities or debt reduction.
Investors should consider the repurchase size relative to the total number of shares outstanding. With Millicom holding 648,655 treasury shares post-purchase out of a total of 172,096,305 shares, the impact on the EPS might be minimal. Nonetheless, the repurchase activity should be analyzed in the context of the company's overall capital allocation strategy and long-term growth prospects.
Share repurchase programs can impact investor sentiment and the broader market perception of a company. Millicom's activity in this area could be perceived as a positive move, potentially attracting more investors. However, the market's response will also depend on the current macroeconomic conditions and the performance of the telecommunications sector as a whole.
It is important to assess how Millicom's repurchase strategy compares with its peers. If similar companies are not engaging in buybacks, Millicom's actions could distinguish it in the market. Conversely, if repurchases are a common trend in the industry, Millicom's actions may not stand out to investors. The timing and price paid for the shares, as well as the communication of the strategy to investors, are also critical factors that can influence market reaction.
Market trends, such as the increasing demand for digital connectivity, could also play a role in shaping the future value of Millicom's shares. Investors should monitor the company's performance indicators and sector-specific developments to fully understand the implications of the repurchase program.
It is important to recognize that Millicom's share repurchase program is conducted under the provisions of Article 5 of MAR and the Commission Delegated Regulation No 2016/1052, known as the 'Safe Harbour Regulation.' This suggests that the company is taking steps to ensure compliance with market abuse regulations, which is crucial for maintaining investor trust and avoiding legal repercussions.
The 'Safe Harbour Regulation' provides conditions under which issuers can buy back shares without risking breaching market abuse rules. This includes limits on pricing and timing, ensuring that transactions do not manipulate the market. For investors, understanding the legal framework within which share repurchases occur is essential, as it provides a layer of protection against potential abuses of insider information or market manipulation.
Investors should also be aware that while share repurchases can be beneficial, they must be part of a transparent and well-governed corporate strategy. The detailed disclosure of transactions attached to Millicom's press release is a positive step in this direction, providing transparency and allowing stakeholders to scrutinize the repurchase activity closely.
Millicom (Tigo) share repurchase activity
Luxembourg, January 12, 2024 – Pursuant to the share repurchase program announced on December 15, 2023, Millicom repurchased 136,599 of its Swedish Depository Receipts (SDRs) between January 8, 2024 and January 12, 2024, as detailed in the table below.
| Trade Date | Number of SDRs repurchased | Daily average price paid* (SEK) | Daily repurchase amount* (SEK) |
| 01/08/2024 | 27,999 | 190.7092 | 5,339,667 |
| 01/09/2024 | 25,000 | 192.2575 | 4,806,438 |
| 01/10/2024 | 37,000 | 190.0912 | 7,033,374 |
| 01/11/2024 | 18,600 | 192.3981 | 3,578,605 |
| 01/12/2024 | 28,000 | 191.8941 | 5,373,035 |
* Excluding commissions
All purchases were carried out on Nasdaq Stockholm by Citigroup Global Markets Limited on behalf of Millicom. Following the purchases, Millicom holds 648,655 treasury shares as of January 12, 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 8, 2024, and January 12, 2024?
Who carried out the purchases for Millicom?
How many treasury shares does Millicom hold as of January 12, 2024?
What is the total number of shares outstanding in Millicom?
In what way is the repurchase program being executed?
