The council of the Colombian city of Medellin has voted in favour of changing the ownership structure of its telco, UNE EPM Telecomunicaciones, which could pave the way for a merger with Stockholm-listed Millicom.
The emerging markets specialist and…
The council of the Colombian city of Medellin has voted in favour of changing the ownership structure of its telco, UNE EPM Telecomunicaciones, which could pave the way for a merger with Stockholm-listed Millicom.
The emerging markets specialist and utility EPM – wholly-owned by the city – said in February that they had entered into discussions to merge Millicom-controlled Tigo Colombia with UNE.
Medellin’s council has passed a motion to allow a change in UNE’s ownership structure by 11 votes to nine following two months of discussions. Millicom said that talks with UNE will now continue on a potential merger. The company has previously said that any agreement is expected to be reached by the end of June.
The parties are already partners in Tigo Colombia: Millicom owns 50% plus one share while UNE holds 25%. Millicom plans to merge the holding company that holds 50% in Tigo with UNE. A spokesperson for the Luxembourg-headquartered telco previously said that both parties would own 50% in the merged entity, but that Millicom was seeking to have control over the business.
UNE provides fixed-line, internet and HDTV services while Tigo Colombia offers mobile telephony.
