COMPANIES & STRATEGIES - TECHNOLOGY

Telecoms

Luxembourg-based Millicom acquires Tigo Guatemala in $2.2bn deal



Tigo Guatemala is currently the leading mobile provider in Guatemala with 11.6 million subscribers and the leading broadband internet provider with 392,000 subscribers. 2019 Libby Greene/ Nasdaq, Inc.

Tigo Guatemala is currently the leading mobile provider in Guatemala with 11.6 million subscribers and the leading broadband internet provider with 392,000 subscribers. 2019 Libby Greene/ Nasdaq, Inc.

Luxembourg-based telecoms service provider Millicom International will take to take full control of mobile operator Tigo Guatemala in a $2.2bn deal.

Millicom’s acquisition of the remaining 45% stake from Tigo constitutes the largest single foreign investment in Guatemala according to the Financial Times.

“Hand in hand with the vision and strong commitment of our team of more than 3,100 employees in the country, we will continue to build the digital highways that connect people, improve lives, and develop communities all throughout Guatemala,” said Millicom CEO Mauricio Ramos.

The company clarified that a group of leading international banks will provide bridge financing to fund the transaction. Millicom will refinance the bridge via the planned issuance of approximately $1.5bn of new long-term debt, and approximately $750m of new equity.

Tigo Guatemala is currently the leading mobile provider in the country with 11.6 million subscribers and the leading broadband internet provider with 392,000 subscribers while also being the most profitable business within the Millicom Group with an EBITDA margin above 51%.