Millicom is not going ahead with its proposed Africa bond issue in the near future, due to its merger discussions with Colombian conglomerate EPM.
As TelecomFinance previously reported, the Africa unit of the Stockholm-listed telco group was…
Millicom is not going ahead with its proposed Africa bond issue in the near future, due to its merger discussions with Colombian conglomerate EPM.
As TelecomFinance previously reported, the Africa unit of the Stockholm-listed telco group was considering issuing US$510m senior notes and had begun a roadshow to assess investor appetite.
However, earlier this month the company announced that it was in advanced negotiations with Colombian conglomerate EPM about a merger of their telecoms operations in the country.
As the company’s strategy is now focussing elsewhere, the African unit’s bond issue is being postponed until the outcome of the merger talks is known, a Milicom spokesperson told TelecomFinance today.
“There was a lot of investor interest [in the bond] but we are now in exclusive discussions with EPM and we are going to wait and see how the deal goes either way,” she said.
Ratings agency Fitch had given the proposed notes, which would mature in 2020, an expected rating of BB+.
“Proceeds from the notes will be used to refinance existing debt and capital expenditures at the African subsidiaries,” the ratings agency said previously.
Millicom’s African unit, MIC Africa, recorded total consolidated cash of US$970m as of 30 September 2012, according to Fitch.
Millicom’s operations in Africa comprise Chad, the Democratic Republic of Congo, Ghana, Mauritius, Rwanda, Senegal, and Tanzania.
