Stockholm-listed Millicom has proposed an offering of senior unsecured notes.
It is raising funds to finance the merger between its subsidiary Tigo Colombia and state-owned telco UNE EPM, Fitch said in a memo.
Millicom could not be reached to…
Stockholm-listed Millicom has proposed an offering of senior unsecured notes.
It is raising funds to finance the merger between its subsidiary Tigo Colombia and state-owned telco UNE EPM, Fitch said in a memo.
Millicom could not be reached to provide more details on the financing.
The ratings agency gave the notes a BB+ rating and said a successful merger will improve the competitive position of the new business in Colombia, as they offer complementary services. Tigo is a wireless operator while UNE EPM provides cable TV, broadband and fixed-line telephony services.
Millicom hopes to complete the deal in Q1 2014. Until then, the proceeds from the issuance will sit in an escrow account.
Millicom and UNE’s parent, EPM, agreed on a deal in principle in July. Earlier this week they settled on the terms of a transaction, which now requires a number of regulatory approvals to complete.
As part of the deal Millicom will consolidate UNE, which will add US$1.1bn on to the emerging-market specialist’s balance sheet. UNE EPM already has a 25% stake in Tigo Colombia while Millicom owns 50% plus one share.
