As a result, the move will see Millicom acquire 100% of the Uruguayan business and expects the transaction to boost cash flow by 2026, thanks to cost savings and better integration with its other operations in the region.
The acquisition will also bring immediate scale and long-term value, while also reducing overall risk due to Uruguay’s stable economy and strong credit rating.
Meanwhile, the deal is also expected to temporarily raise Millicom’s debt by about 0.1x.
According to Millicom, the move creates operational and commercial opportunities with its existing businesses in Paraguay and Bolivia, as well as expands its digital ecosystem, opening up new opportunities.
Additionally, it also supports the company’s mission to drive digital inclusion and sustainable development throughout Latin America.
Millicom CEO, Marcelo Benitez, said: “This acquisition represents a key milestone in our purposeful growth strategy across Latin America - especially in Uruguay, a country with strong fundamentals and a forward-looking digital agenda.
“We are committed to being a long-term partner in Uruguay’s digital development by investing in mobile infrastructure, improving service quality, and fostering innovation and talent development.”
The transaction remains subject to customary closing conditions, including regulatory approvals.
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