Monday, 26 June 2017

Millicom enters into put and call agreement with Guatemala partner

Millicom
Thursday 16 January 14

Millicom, the international telecommunications and media company and its partner in Tigo Guatemala have strengthened their partnership by entering into a put and call agreement. Under the agreement, Millicom’s local partner in Guatemala…

Millicom, the international telecommunications and media company and its partner in Tigo Guatemala have strengthened their partnership by entering into a put and call agreement.

Under the agreement, Millicom’s local partner in Guatemala, Miffin Associates Corp., has granted Millicom an unconditional call option for its 45% stake with a minimum term of two years. In return, Millicom has granted its partner a put option for the same duration, exercisable in the event Millicom sells its interest in Tigo Guatemala or undergoes a change of control.

As a result, Millicom will fully consolidate the operation in Guatemala from January 1, 2014. Previously, the accounts of the Guatemala business were proportionately consolidated.

Commenting on the agreement today, Millicom President & CEO, Hans-Holger Albrecht said:

“Over the years, we have worked very successfully with our partner to grow the company into the most successful mobile player in Guatemala. Today’s agreement strengthens our partnership with Miffin Associates Corp to the benefit of Tigo Guatemala’s people and its customers. This new structure will enable us and our partner to take Tigo Guatemala to new heights in the years to come.”

While the agreement has no impact on Millicom’s reported normalized net profit or on Millicom’s overall exposure to Guatemala, the pro forma impact of this change on the Group financial statements for the nine months ended September 30, 2013 is an increase in reported revenues, EBITDA and FCF by 10%, 14% and 16% respectively.

We will provide with our FY results on February 11, 2014 a pro forma non audited P&L for the past years and quarters for comparability purposes.


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