Millicom signs agreement to sell and lease back towers to American Tower in Paraguay
Luxembourg 26 April, 2017 – Millicom International Cellular S.A. ("Millicom") announced today that its subsidiary Telefonica Celular del Paraguay S.A. (“Tigo Paraguay”) has agreed to sell approximately 1,400 wireless communications towers to a subsidiary of American Tower Corporation (“ATC”) in Paraguay. As a result of the transaction, Tigo Paraguay will receive approximately Gs700 billion, equivalent to US$125 million, in cash.
Additionally, Tigo Paraguay and ATC have entered into a long term local currency leasing agreement whereby ATC will provide Tigo Paraguay with wireless communications towers to support Tigo Paraguay’s wireless networks and rollout plans. The transaction is expected to create savings in both capital and operating expenditures for Tigo Paraguay. 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.
Mauricio Ramos, CEO of Millicom, said: “This agreement is consistent with our strategic goal of a two-fold reconfiguration of our business, rapidly growing our mobile data and cable revenue in Latin America, and pushing ahead with major initiatives to enhance our operational and capital efficiency. We are pleased that Tigo Paraguay will be able to rely on the strong operational credentials of American Tower, the largest tower operator in Latin America.”
For further information, please contact
Press:
Vivian Kobeh, Corporate Communications Director
Tel: +1 305 476 7352 / +1 305 302 2858 / press@millicom.com
Investors:
Michel Morin, VP Investor Relations
+352 277 59094/ investors@millicom.com
Mauricio Pinzon, Investor Relations Manager
Tel: +44 20 3249 2460 / investors@millicom.com
About Millicom
Millicom is a leading telecom and media company dedicated to emerging markets in Latin America and Africa. Millicom sets the pace when it comes to providing innovative and customer-centric digital lifestyle services through its principal brand, Tigo. Millicom employs about 18,000 people and provides 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 Adjusted EBITDA of USD 2.22 billion.
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