Millicom, the international telecommunications and media company (Stockholmsbörsen: MIC) and Empresas Públicas de Medellín E.S.P. (‘EPM’), the largest public service company in Colombia, signed today a final agreement to combine their respective businesses in Colombia. This follows the announcement of an agreement in principle in July 2013.
The regulatory process will now commence and comprise reviews undertaken by the Superintendencia de Sociedades (corporations authority), Superintendencia de Industria y Comercio (consumer protection and competition authority), Superintendencia Financiera (financial authority) and the Autoridad Nacional de Televisión (television industry regulator).
Provided the regulatory review concludes positively the newly-merged integrated company is expected to:
- Create a business offering a comprehensive range of bundled digital services to millions of households including mobile and fixed telephony, mobile and fixed broadband and payTV
- Exploit the complementary geographic coverage and commercial offerings of UNE, EDATEL, ETP and Tigo
- Implement a key component of Millicom’s strategy to double revenue by 2017 and increase profits.
Millicom reiterates that following the proposed combination, the group net debt will increase by a total consideration of around $1.1billion as the new combined company will be fully consolidated upon closing of the transaction. All mid-term outlooks communicated by Millicom at its Capital Markets Day remain unchanged.
Commenting on the signature today, Millicom President & CEO, Hans-Holger Albrecht reiterated:
“I am delighted that we have been able to conclude such an agreement with our colleagues at EPM. It brings even closer the prospect of creating an exciting new business to provide a complete range of digital services to the people of Colombia. Meanwhile, we will work hard with the Colombian authorities to provide all the information they need to assess the proposed merger.”
Millicom 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 over 47 million customers. 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.