Millicom completes 100% acquisition of Tigo Panama
Millicom has closed the previously announced transaction to acquire the remaining 20% interest in Telecomunicaciones Digitales, S.A. (Cable Onda or Tigo Panama).
The news comes following the exercise of the founders’ liquidity option included in the shareholders’ agreement, which was entered into in 2018, as a result, Millicom now owns 100% of Tigo Panama.
Announced in 2018, the sales was announced as part of a $1 billion deal which saw Millicom acquire a 80% stake in Tigo Panama.
At the time, Mauricio Ramos, CEO of Millicom, said: "Our acquisition of Cable Onda is consistent with our strategy of accelerating the deployment of high-speed data networks in Central and South America."
Following this, Millicom completed the purchase of Telefónica Móviles Panamá in a €573 million deal, back in 2019.
The deal is part of a three-part acquisition, the company closed the €379 million acquisition of Telefoníca Celular de Nicaragua in May 2019. The third acquisition, of Telefónica Costa Rica for €503 million, did not go through instead it was sold to Liberty Latin America in 2020.
In related news, November 2021 saw announce plans to acquire the remaining 45% equity interest in its joint venture businesses in Guatemala (Tigo Guatemala) for $2.2 billion in cash.
Once completed, Millicom will own a 100% equity interest in Tigo Guatemala and the deal is expected to accretive to Millicom’s cash flow and net income, increasing the company's equity free cash flow by approximately $200 million before incremental financing costs.