Stockholm-listed telco Millicom may not close the proposed merger between its Colombian unit and UNE EPM Telecomunicaciones until early 2014, its CEO has said.
Speaking on an investor call today Hans-Holger Albrecht said that the talks between Millicom…
Stockholm-listed telco Millicom may not close the proposed merger between its Colombian unit and UNE EPM Telecomunicaciones until early 2014, its CEO has said.
Speaking on an investor call today Hans-Holger Albrecht said that the talks between Millicom and Colombian conglomerate EPM – which were expected to conclude by the end of June – were ongoing and that he was “very confident” that a deal could be agreed soon.
“Once we have signed the agreement then the regulatory approval will probably take towards the end of the year/beginning of next year,” Albrecht said.
The transaction is complicated by the fact that UNE EPM is owned by EPM which is a utilities company owned by the city of Medellin.
UNE EPM, which offers cable TV and fixed-line services, already has a 25% stake in Millicom’s local wireless operator Tigo Colombia. Millicom owns 50% plus one share of Tigo Colombia and is looking to merge the vehicle that holds 50% in Tigo with UNE. Millicom and EPM would own half each of the merged company, but Millicom is looking for management control.
Talks between the two parties began in early February. In May Medellin’s council voted 11 to nine in favour of changing the ownership structure of its telco which allowed talks to continue.
