Welcome to our dedicated page for Millicom International Cellular S.A. news (Ticker: TIGO), a resource for investors and traders seeking the latest updates and insights on Millicom International Cellular S.A. stock.
Millicom International Cellular S.A. (TIGO) is a prominent telecommunications company based in Luxembourg, specializing in providing fixed line and mobile services. Operating under the Tigo brand, Millicom has a significant presence in emerging markets across Latin America. The company delivers a range of telecom services including wireless and fixed-line solutions in countries such as Bolivia, Nicaragua, Panama, El Salvador, Guatemala, Paraguay, Colombia, Costa Rica, and Honduras. Notably, Millicom owns 100% of its operations in most of these countries, with a 50% stake in Colombia and 67% in Honduras.
Millicom's robust infrastructure supports comprehensive telecommunications services for millions. Its fixed-line networks reach approximately 13 million homes, while its wireless networks cover about 120 million people. The company is known for providing converged packages that can include fixed-line phone services, broadband, and pay television, along with its wireless offerings. This integrated approach allows Millicom to meet diverse consumer needs in less developed regions.
In 2024, Millicom plans to carve out its infrastructure assets and mobile financial services business, aiming to optimize its operations and enhance shareholder value. The company's focus on emerging markets and its strategic initiatives reflect its commitment to growth and adaptation in a rapidly evolving industry.
Recent developments include a share repurchase activity, which indicates the company’s confidence in its financial health and future prospects. This move is expected to provide value to shareholders and demonstrates Millicom’s proactive approach to managing its equity base.
Millicom’s financial performance and strategic initiatives are continually tracked and updated through various channels, ensuring stakeholders have access to the latest information on the company’s performance and market activities.
Millicom International Cellular S.A. (TIGO) has distributed a total of 31,682 shares to its Board of Directors as part of their remuneration. This distribution, approved by shareholders at the annual general meeting on May 23, 2024, covers the share-based portion of director compensation for the period from the 2024 AGM to the 2025 AGM, expected to be held in May 2025. The company has disclosed detailed information about these distributions on its website, ensuring transparency for investors and stakeholders. This move aligns with Millicom's commitment to incentivize and retain top talent in its leadership team.
Millicom (Tigo) has announced that it will release its second quarter 2024 results on August 2, 2024, through a press release. The company will host a video conference for the global financial community on the same day at 14:00 (Stockholm) / 13:00 (London) / 08:00 (Miami).
Participants must register for the interactive event and can join in listen-only mode by dialing specific numbers. Those wishing to ask questions during the live event should notify the Investor Relations team via email after the event starts. Accompanying slides and a replay of the event will be available on Millicom's investors website.
Millicom's Independent Committee has unanimously recommended that shareholders reject the tender offers made by Atlas Luxco S.à r.l at $24 per share. The committee believes the offer significantly undervalues Millicom (TIGO) based on several factors:
1. The offer price doesn't adequately reflect Millicom's expected Equity free cash flow of $659 million, $701 million, and $833 million in 2024, 2025, and 2026 respectively.
2. It represents a 37.3% discount compared to trading multiples of comparable companies.
3. The offer price is below recent closing prices, including a 3.1% discount to the July 12, 2024 closing price.
4. The offered premium is significantly lower than average control premia in similar transactions.
5. Nordea Bank has provided an opinion stating the offer price is not fair from a financial perspective.
The independent committee of Millicom's (TIGO) Board of Directors unanimously recommends that shareholders and SDR holders reject the public cash offers from Atlas Luxco S.à r.l., valuing Millicom at approximately $4.1 billion, or $24.00 per share.
The committee believes the offers significantly undervalue Millicom, citing the company's strong financial outlook, with expected equity free cash flow of $659 million in 2024, rising to $833 million by 2026, and a leverage ratio expected to improve to 1.5x by 2026.
Nordea Bank's fairness opinion supports this view, stating the offer price is not fair from a financial perspective. The committee also notes that the offer includes negative premiums and positive premiums compared to recent share prices.
Additionally, the offer does not adequately consider Millicom's strategic potential, including potential dividends, share repurchases, or return of capital to shareholders. The committee recommends shareholders not tender their shares and highlights the ongoing support from Atlas in Millicom's strategic plan execution.
Millicom (Tigo) has entered a new phase in its collaboration with Amazon Web Services (AWS) to enhance its cloud services for businesses in Latin America. The new agreement will help Tigo Business meet the growing demand for professional cloud services and become the primary partner for AWS customers in the region. This initiative aims to support the digital transformation of businesses across nine Latin American countries.
According to IDC, the cloud market size in Central America and the Caribbean is projected to reach $283.2 million in 2024, with a CAGR of 18.6% from 2023 to 2028. The partnership will also focus on digital inclusion and training in Latin America. Tigo Business has invested significantly in SD-WAN services, managed security, and multi-cloud offerings, consolidating its leadership in the regional market.
The agreement is a strategic move to expand Tigo Business's digital solutions portfolio, offering advanced services that ensure security, connectivity, and innovation, thereby fostering Latin America's digital transformation.
A committee of independent directors from Millicom's (Tigo) board has evaluated an anticipated all-cash tender offer by Atlas Luxco at $24 per share for all outstanding shares and SDRs in Millicom that Atlas does not already own. The committee believes this offer undervalues Millicom, citing a review of expected financial performance. Preliminary estimates for 2024 indicate Millicom's Equity Free Cash Flow (EFCF) will exceed $600 million, excluding $46 million from a Colombia tower sale. Additionally, leverage is projected to reach a target of 2.5x.
The committee has entered exclusive negotiations for a sale and leaseback of a significant portion of Millicom's tower portfolio. Any formal recommendation regarding the tender offer will align with Swedish Takeover Rules. Advising the committee are Goldman Sachs, Morgan Stanley, Davis Polk & Wardwell LLP, and others.
Millicom (Tigo) has received a non-binding expression of interest from shareholder Atlas Luxco S.à.r.l. regarding a potential all-cash tender offer for all outstanding shares at $24 per share. This follows Atlas's earlier press release and Form 13D filing. The Board of Directors will review any forthcoming offer, but there is no certainty of a transaction occurring, nor clarity on its terms, timing, or form.
Millicom International Cellular held its Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) on May 23, 2024. All resolutions proposed by the Board and Nomination Committee were adopted. The AGM set the number of directors at nine and re-elected existing members, with Justine Dimovic and Maxime Lombardini joining as new Directors.
The AGM approved the annual accounts for the year ending December 31, 2023, allocating USD 7.56 million to the legal reserve and USD 337.31 million to unappropriated net profits. KPMG was elected as the external auditor, and the Share Repurchase Plan, 2023 Remuneration Report, and Senior Management Remuneration Policy were approved, among others.
The EGM passed resolutions to remove the casting vote of the Chair and restated the Articles of Association to reflect these changes. The minutes will be available on Millicom's website.
Millicom (Tigo) has concluded its share repurchase program, initially announced on December 15, 2023. The company repurchased 17,164 Swedish Depository Receipts (SDRs) between May 20 and May 22, 2024. This brings the total shares repurchased to 2 million, amounting to SEK 375,950,837 (approximately $35 million). These transactions were carried out on Nasdaq Stockholm by Citigroup Global Markets Following these purchases, Millicom now holds 907,839 treasury shares, with a total of 172,096,305 shares outstanding. The repurchase program adheres to Article 5 of MAR and the Commission Delegated Regulation No 2016/1052.
Millicom (Tigo) has repurchased 36,701 of its Swedish Depository Receipts (SDRs) between May 13, 2024, and May 17, 2024, as part of its share repurchase program announced on December 15, 2023. The daily repurchase amounts varied, with 7,577 SDRs repurchased on May 13 at an average price of 245.06 SEK, totaling 1,856,885 SEK, and 7,300 SDRs repurchased on May 17 at an average price of 254.12 SEK, totaling 1,855,148 SEK. All purchases were made on Nasdaq Stockholm by Citigroup Global Markets Following these transactions, Millicom holds 890,675 treasury shares. The total number of shares outstanding in Millicom is 172,096,305. This activity follows the provisions of Article 5 of MAR and the Commission Delegated Regulation No 2016/1052.
FAQ
What is the current stock price of Millicom International Cellular S.A. (TIGO)?
What is the market cap of Millicom International Cellular S.A. (TIGO)?
What does Millicom International Cellular S.A. do?
Which countries does Millicom serve?
What services does Millicom offer?
What are Millicom's recent achievements?
How extensive is Millicom's network coverage?
Who owns Millicom's operations in Latin America?
What is Millicom's strategic focus for 2024?
What is the significance of Millicom's share repurchase activity?
How does Millicom communicate financial performance and updates?
What is Millicom's approach to market adaptation?
