Millicom (Tigo) updates on the conditions for its ongoing share repurchase activity

Rhea-AI Summary

Millicom (Tigo) has announced updates to its ongoing share repurchase program. Due to Swedish regulatory requirements, the company will not repurchase Swedish Depositary Receipts (SDRs) or Millicom U.S. Shares at prices exceeding USD 25.75 or its SEK equivalent until March 2, 2025. This price ceiling corresponds to the increased offer price previously made by Atlas Luxco S.à r.l in its public takeover offer for Millicom's SDRs and U.S. Shares earlier this year.

Positive

• Price ceiling provides clarity for shareholders regarding buyback terms
• Ongoing share repurchase program demonstrates commitment to shareholder value

Negative

• Price cap of $25.75 limits buyback flexibility
• Regulatory restrictions may impact buyback effectiveness

Insights

Financial Analyst

This update on share repurchase pricing conditions represents a technical adjustment to Millicom's buyback program, capping the maximum price at $25.75 per share until March 2025. This limitation, stemming from Swedish regulatory requirements, is tied to Atlas Luxco's previous takeover offer. The price ceiling could potentially impact the company's ability to execute its buyback program effectively if market prices exceed this threshold, though current trading levels make this less of an immediate concern. The restricted price flexibility might affect the company's capital allocation strategy and ability to return value to shareholders through repurchases during this period.

Millicom (Tigo) updates on the conditions for its ongoing share repurchase activity

Luxembourg, December 17, 2024 - Millicom hereby informs that, due to Swedish regulatory considerations, Millicom will, during the period until March 2, 2025, not be repurchasing SDRs or Millicom U.S. Shares at a price above USD 25.75 or the equivalent amount in SEK (such price being the increased offer price that Atlas Luxco S.à r.l offered holders of SDRs and Millicom U.S. Shares in its public takeover offer for Millicom’s SDRs and U.S. Shares earlier this year). 

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For further information, please contact

Press: Sofía Corral, Director Corporate Communications 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, 2024, Millicom, including its Honduras Joint Venture, employed approximately 15,000 people, and provided mobile and fiber-cable services through its digital highways to more than 46 million customers, with a fiber-cable footprint of about 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg.

FAQ

What is the maximum price TIGO will pay for shares in its buyback program?

TIGO will not repurchase shares at prices above USD 25.75 or its SEK equivalent until March 2, 2025.

How long will TIGO's share repurchase price restriction remain in effect?

The price restriction will remain in effect until March 2, 2025.

Why did TIGO implement a price cap on its share repurchase program?

The price cap was implemented due to Swedish regulatory considerations and corresponds to Atlas Luxco's previous takeover offer price.

What types of shares are affected by TIGO's buyback price restriction?

The price restriction affects both Swedish Depositary Receipts (SDRs) and Millicom U.S. Shares.