Emerging markets-specialist Millicom has received the final regulatory approval it needs to complete the drawn-out merger of its Tigo Colombia unit with Medellín-based triple play operator UNE EPM.
Colombia’s financial watchdog, the Superintendencia…
Emerging markets-specialist Millicom has received the final regulatory approval it needs to complete the drawn-out merger of its Tigo Colombia unit with Medellín-based triple play operator UNE EPM.
Colombia’s financial watchdog, the Superintendencia Financiera, has cleared the merger meaning the companies can now finalise the tie-up.
Millicom agreed the deal with city-owned utility EPM last July after beginning talks in February 2013 and had expected to close the transaction by the end of Q1 this year.
However, the regulatory process has taken longer than expected. Millicom cleared its first hurdle in April when it received approval from antitrust authority SIC. It then won consent from broadcast regulator ANTV in late June.
In a statement Millicom said it would now schedule a joint shareholder meeting with EPM in the next few weeks to complete the transaction and announce the directors and officers of the merged company.
Millicom currently owns 50% plus one share of Tigo Colombia while UNE EPM owns the rest, and EPM owns 99.9% of UNE EPM.
Under the terms of the merger, EPM will hold 50% plus one share of the combined telco, while Millicom will own the rest. The Stockholm-listed operator will assume operational and administrative control, and fully consolidate the integrated entity from closing, adding US$1.1bn debt to its capital structure.
Tigo Colombia is the third-largest mobile operator in Colombia and UNE EPM’s fixed-line network covers 2.6 million homes – predominantly in Medellin and surrounding areas – out of Colombia’s 13 million households.
The merger will allow Millicom to offer bundled quad-play services in what is now the fastest-growing economy in Latin America.
