Millicom’s Colombian subsidiary signs agreement to sell and lease back towers to American Tower
Luxembourg 18 July, 2017 – Millicom International Cellular S.A. ("Millicom") announced today that its subsidiary Colombia Móvil S.A. E.S.P (“Tigo”) has agreed to sell approximately 1,200 wireless communications towers to a subsidiary of American Tower Corporation (“ATC”) in Colombia. As a result of the transaction, Tigo will receive approximately 448 billion COP, equivalent to US$147 million, in cash.
As part of the transaction, Tigo and ATC have entered into a long-term agreement in local currency whereby ATC will lease to Tigo wireless communications towers to support its wireless networks. The specific number of towers and final purchase price will be determined once the various closings have taken place, which are subject to customary closing conditions and regulatory approval.
Mauricio Ramos, CEO of Millicom, said: “Colombia is our biggest operation in Latin America, where we have a strong focus on remaining competitive by bringing advanced infrastructure and services to our customers. Similar to the Paraguay transaction that we announced in April, this new agreement with American Tower Corporation enhances our operational and capital efficiency, while also allowing us to invest in improving the connectivity experience for our customers. The lease obligation is denominated in Colombian pesos, consistent with our objective of increasing our proportion of financing in local currency.”
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Millicom is a leading provider of cable and mobile services dedicated to emerging markets in Latin America and Africa. Millicom sets the pace when it comes to providing high-speed broadband and innovative digital lifestyle services through its principal brand, Tigo. As of December 2016, Millicom employed about 18,000 people and provided mobile services to more than 57 million customers, with a Cable footprint of more than 8.1 million homes passed. Founded in 1990, Millicom International Cellular SA is headquartered in Luxembourg and listed on NASDAQ OMX Stockholm under the symbol MIC. In 2016, Millicom generated revenue of USD 6.25 billion and EBITDA of USD 2.17 billion.
This information was prior to this release inside information and is information that Millicom is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 9:00am CET on 18 July, 2017.