Millicom completes $440 million acquisition of Telefónica in Uruguay

Published 07/10/2025, 15:22
Millicom completes $440 million acquisition of Telefónica in Uruguay

LUXEMBOURG - Millicom International Cellular S.A. (NASDAQ:TIGO), currently valued at $8 billion and trading at $47.86, has completed its acquisition of Telefónica Móviles del Uruguay S.A. (Movistar) for an enterprise value of $440 million, following final approval from the Uruguayan government, the company announced Tuesday. According to InvestingPro analysis, TIGO stock has delivered an impressive 111.54% return year-to-date.

The transaction marks Millicom’s entry into the Uruguayan market, expanding its footprint in South America and strengthening its position as a regional telecommunications provider.

"This acquisition marks a decisive step in our growth strategy," said Marcelo Benitez, CEO of Millicom, in a statement from the press release.

The company expects the deal to generate synergies across networks, operations, and commercial services while diversifying its value creation sources in a market with solid macroeconomic fundamentals. Integration is projected to positively contribute to free cash flow for shareholders beginning in 2026.

With this acquisition, Millicom further consolidates its platform as one of South America’s principal telecom operators. The company, which operates under the TIGO brand, provides mobile and fiber-cable services to more than 46 million customers across Latin America, with a fiber-cable footprint covering over 14 million homes as of June 30, 2025.

Millicom, headquartered in Luxembourg with principal executive offices in Florida, employs approximately 14,000 people including its Honduras Joint Venture.

In other recent news, Millicom International Cellular SA reported impressive second-quarter earnings for 2025, with earnings per share (EPS) reaching $4.03, significantly exceeding the forecasted $0.54. This resulted in a surprise increase of 646.3%. However, the company’s revenue slightly missed expectations, coming in at $1.37 billion compared to the projected $1.4 billion. Meanwhile, Millicom’s subsidiary, Telecel Paraguay, announced plans to redeem $150 million in senior unsecured notes due in 2027. The redemption is set for September 15, 2024, at a price equal to 100% of the principal amount, along with accrued and unpaid interest. These developments highlight Millicom’s recent financial maneuvers and strategic moves in the market.

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