LUXEMBOURG-Millicom International Cellular S.A. said it plans to restructure its operations in an effort to maximize shareholder value.
The company will spin off its Asian operations under the name Sanbao Telecommunications. Sanbao will own and operate Millicom’s cellular telephone systems in Cambodia, India, Mauritius, Pakistan, Philippines, Sri Lanka and Vietnam.
The company also said it will initiate discussions with potential strategic partners, investors or buyers for its Latin American operations, which include cellular telephone operations in Bolivia, Colombia, El Salvador, Guatemala, Honduras and Paraguay.
Millicom’s remaining businesses will be renamed Millicom S.A. Those businesses include Millicom’s telephone operations in Russia, the Baltics and Africa, a 100 percent interest in Multi-national Automated Clearing House S.A., an 8 percent interest in NetCom Systems AB, a 50 percent interest in Mobilux and a New Ventures group focused on developing new telecommunications ventures.
As part of the restructuring, the company also intends to make an exchange or tender offer for its existing subordinated loan notes, and it will return a portion of the proceeds of the restructuring to its shareholders through a share repurchase or another form of distribution.
“We consider that there is substantial value within (Millicom’s) operations, which is currently not reflected in the company’s stock price,” said Jay Metcalfe, president and chief executive officer of Millicom.
