Millicom, the international telecommunications and media company
(Stockholmsbörsen: MIC) 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
"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, 2013is 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.
Millicom (STO:MIC) is a leading international telecommunications and
media company dedicated to emerging markets in Latin America and Africa.
Millicom sets the pace when it comes to providing digital lifestyle
services to the world's emerging markets, giving access to the world,
primarily through mobile devices. Operating in 15 countries, Millicom
offers innovative and customer-centric products. The Millicom Group
employs more than 10,000 people and provides mobile services, access to
the internet, content and financial services to close to 49 million
customers, with over 8 million in Guatemala through its local
partnership with Miffin Associates Corp. Founded in 1990, Millicom
International Cellular SA is headquartered in Luxembourg and listed on
NASDAQ OMX Stockholm under the symbol MIC. In 2012, Millicom generated
revenue of USD 4.81 billion and EBITDA of USD 2.07 billion.
This press release contains "forward-looking statements", which are
statements that are not historical facts, including statements
concerning the parties' ability to complete the proposed transaction;
the anticipated timing of the proposed transaction; the expected
benefits and costs of the proposed transaction; management plans
relating to the proposed transaction; any statements of operations,
including the execution of integration plans; any statements of
expectation or belief; and any statements of assumptions underlying any
of the foregoing. Any statement in this announcement that expresses or
implies any party's intentions, beliefs, expectations or predictions
(and the assumptions underlying them) is a forward-looking statement.
Forward-looking statements involve inherent risks, uncertainties and
assumptions which could cause actual results to differ materially from
those expressed or implied by such forward-looking statements and
assumptions. The forward-looking statements contained in this
announcement are made as of the date hereof, and each party expressly
disclaims any obligation to update or correct any forward-looking
statements made herein due to the occurrence of events after the
issuance of this announcement. This announcement is for informational
purposes only and is not an offer to sell or the solicitation of an
offer to buy any securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
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