Swedish mobile operator
Millicom International Cellular
said Friday it has acquired control of
, the third largest mobile operator in Colombia, for $125 million.
Millicom is acquiring 21.6 million new shares of Colombia Movil, which represents a 50% plus one share controlling stake in the company that operates under the Ola brand. Ola has an estimated 9% market share in a country of more than 43 million people.
Millicom said it expects to invest a total of around $200 million in new equity in Colombia Movil over the next three years, and that it will fund the investment by issuing new debt.
"The purchase of Colombia Movil doubles Millicom's population under license in our highly successful Latin American region," Marc Beuls, president and chief executive, said in a statement.
Shares of Millicom edged lower in morning trading.