Millicom reaches deal with EPM to advance ColTel merger in Colombia

Published 14/08/2025, 22:06
Millicom reaches deal with EPM to advance ColTel merger in Colombia

LUXEMBOURG - Telecommunications provider Millicom (NASDAQ:TIGO), which has seen its stock surge over 90% year-to-date according to InvestingPro data, announced Thursday it has reached a strategic agreement with Empresas Públicas de Medellín (EPM) that advances its plans to integrate Tigo-UNE and Colombia Telecomunicaciones (ColTel) operations in Colombia.

Under the agreement, Millicom has committed to present an offer in EPM’s Law 226 sale process at a minimum price of COP$418,741 per share for Tigo-UNE, representing approximately $520 million in total consideration.

The deal includes provisions securing EPM’s existing exit rights if the sale process fails due to external factors. Should EPM remain a Tigo-UNE shareholder following an unsuccessful sale process, it has agreed to provide consent for the proposed future merger between Tigo-UNE and ColTel, subject to certain closing conditions.

As part of the transaction, Millicom will re-include Tigo-UNE in its Restricted Group, reflecting its strategic commitment to the Colombian market.

"This agreement marks an important milestone for Millicom’s strategy in Colombia," said Marcelo Benitez, CEO of Millicom, according to the company’s press release statement.

Millicom, which operates under the TIGO brand, provides mobile and fiber-cable services across Latin America. As of June 30, 2025, the company employed approximately 14,000 people and served more than 46 million customers with a fiber-cable footprint covering over 14 million homes.

In other recent news, Millicom International Cellular reported its second-quarter earnings, surpassing analyst expectations with an EPS of $4.03, which was $3.49 higher than anticipated. However, the company’s revenue slightly missed forecasts, coming in at $1.37 billion compared to the consensus estimate of $1.4 billion. Millicom’s quarterly performance was notably bolstered by approximately $590 million in net profit from infrastructure transactions, leading to a total net profit of $676 million for the quarter. Despite a 5.9% decline in revenue compared to the same period last year, the company experienced a 1.9% growth on an organic basis. These developments highlight Millicom’s ability to achieve strong earnings despite revenue challenges.

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