Millicom to take full control of mobile operator Tigo Guatemala for $2.2 billion

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(Businesshala) – Telecommunications service provider Millicom International said on Friday it has signed a deal to acquire full control of Tigo Guatemala by acquiring the remaining 45% stake from its local joint venture partner in a $2.2 billion all-cash deal Were.

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Through the deal, which according to the Financial Times is the largest single foreign investment ever made in the Central American country, the Luxembourg-based company will own a 100% equity interest in mobile services firm Tigo.

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The company said a group of major international banks will provide bridge financing for the deal, adding it intends to refinance the bridge, issuing about $1.5 billion in new long-term debt, and about $750 billion through a rights offering. million dollars of new equity. Likely in the first quarter of 2022.

“For Millicom, this new investment reflects our continued belief in Guatemala’s thriving economy and our renewed commitment to the digital transformation of its society,” Chief Executive Officer Mauricio Ramos said in a statement.

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The deal, which is expected to be significant and immediately conducive to Millicom’s cash flow, is expected to increase Millicom’s equity free cash flow by approximately $200 million before incremental financing costs.

Reporting by Riya Binoy and Aakriti Bhalla in Bengaluru; Editing by Rashmi Aichi

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