Atlas, already the top shareholder of Millicom, has been exploring a bid to buy out Millicom shareholders for months
Billionaire Xavier Niel offered to buy out other shareholders of Millicom International Cellular in a deal valuing the carrier at about US$4.1 billion.
Niel’s Atlas Luxco Sarl is offering US$24 a share in cash, a premium of 1.8 per cent compared with the May 22 closing price in the US offer and 1.2 per cent in the Swedish offer, it said in a statement on Monday (Jul 1). The offer is fully financed through funds available to Atlas and financing provided by banks.
Atlas, already the top shareholder of Millicom, has been exploring a bid to buy out Millicom shareholders for months, Bloomberg News previously reported. It marks at least the second time in two years that Millicom has been an active takeover target.
Luxembourg-based Millicom’s board hasn’t made a formal recommendation regarding the offers.
“Atlas wants to continue expanding the reach and capacity of Millicom’s networks and distribution capabilities to grow its customer base and better leverage its comprehensive telecom expertise,” it said in the statement.
Millicom, which provides fixed and mobile telecom services under the Tigo brand to more than 50 million subscribers in Latin America, was in talks last year on a possible sale to Apollo Global Management and Claure Group. Niel took a stake in the company amid those discussions.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The company serves customers in Bolivia, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Paraguay. It reported sales last year of US$5.6 billion, according to its website.
May 22 was the last day of trading prior to a Bloomberg News report about a potential public offer for the company, which the company referred to as “market speculation” in the statement. The US-listed shares of Millicom gained more than 36 per cent this year through Friday’s close. BLOOMBERG
