Millicom noted that the discussions include the potential acquisition by Millicom of Telefonica’s stake in Coltel for approximately $400 million in cash
Millicom and Telefonica announced that they have entered into a non-binding Memorandum of Understanding (MoU) for the potential combination of local carriers Telefonica Colombia (Coltel) and TigoUne.
In a release, Millicom also noted that the discussions include the potential acquisition by Millicom of Telefonica’s stake in Coltel for approximately $400 million in cash. The company also said it aims to acquire the interests of other shareholders in Coltel at the same purchase price per share offered to Telefonica.
Additionally, Millicom intends to offer to purchase Colombian company Empresas Públicas de Medellin’s (EPM) 50% interest in TigoUne. Millicom currently owns a 50% stake in TigoUne.
Millicom plans to fund the proposed aggregate investment of approximately $1 billion in cash and assumed debt with equity free cash flow projected over the next 18 months. Millicom also noted that the transaction remains subject to negotiation and signature of definitive agreements with all parties involved, as well as receipt of regulatory and antitrust approvals and satisfaction of other closing conditions. There is no certainty the transaction will ultimately be consummated, the company said.
“The proposed combined entity would rejuvenate Colombia’s telecom sector by forming a robust telecom entity with the necessary scale and financial capacity to support the significant network and spectrum investments required to achieve Colombia’s ambitious digital inclusion objectives,” Millicom said.
“Colombia will gain a second large scale and financially viable operator at a crucial moment. This strengthened operator would bolster the digitalization of Colombia, ensure broader access to modern digital services across the country and advance the deployment of both fiber and 5G technologies across the country, thereby enabling faster and more reliable services and an improved customer experience,” it added.
In related news, Millicom and Liberty Latin America announced that the parties have entered into an agreement to combine the companies’ respective operations in Costa Rica.
Under the terms of the agreement, Liberty Latin America and its minority partner in Costa Rica will hold an approximate 86% interest and Millicom 14% in the joint operations, with the final ownership percentage confirmed at closing.
Balan Nair, president and CEO of Liberty Latin America, said: “By combining Liberty and Tigo, the fixed operations will accelerate the transition to FTTH and will enable us to deliver exceptional high-speed services for consumers, provide enhanced customer experiences, drive innovation, and offer growth opportunities for our people. With this transaction, Liberty Costa Rica will continue to be a leading connectivity operator in the market.”
Mauricio Ramos, chair of Millicom, said that the combined operations would significantly benefit the telecommunications sector by enhancing fiber network investment to help accelerate Costa Rica’s technological evolution in a highly competitive market.
Millicom stated that the transaction is subject to customary closing conditions, including regulatory authorizations, adding that it expected the transaction to be completed during the second half of 2025.
