Emerging markets-focused Millicom has moved a step closer to finalising the merger between its subsidiary Tigo Colombia and triple-play operator UNE EPM.
Colombia’s regulator for industry and commerce, the SIC, has approved the deal with…
Emerging markets-focused Millicom has moved a step closer to finalising the merger between its subsidiary Tigo Colombia and triple-play operator UNE EPM.
Colombia’s regulator for industry and commerce, the SIC, has approved the deal with conditions.
Millicom said the SIC’s decision contains conditions of the use of spectrum and that it is reviewing the regulator’s judgement.
The tie-up still needs the approval from broadcast watchdog ANTV and the local securities and exchange commission. Millicom expects those decisions to come soon enough for it to close the merger this quarter.
Millicom and UNE’s parent, EPM, agreed on the deal in principle last July. As part of the merger, Millicom will consolidate UNE, which will add US$1.1bn on to the company’s balance sheet. Last October Millicom issued an US$800m eight-year bond to finance the merger.
UNE already has a 24.99% stake in Tigo Colombia while Millicom owns 50% plus one share, but UNE has agreed to take its stake in Tigo up to 49.99% by buying out smaller shareholder ETB, to hasten decision-making and provide a cleaner corporate structure. The stake sale is subject to the regulatory approval of the merger.
