Millicom International Cellular S.A. and Telefonica have entered into a definitive agreement for Millicom's acquisition of Telefonica’s controlling 67.5% equity stake in Coltel. This agreement follows an announcement on July 31, 2024, and is subject to closing conditions including regulatory approvals.
The purchase price for the 67.5% stake is $400 million, subject to customary adjustments for net debt, working capital, and foreign exchange rates, which would have been $362 million as of September 30, 2024. Millicom also intends to offer to purchase the remaining 32.5% of Coltel equity from other investors at the same price per share.
This transaction is expected to rejuvenate Colombia's telecom sector by forming a robust entity with the necessary scale and financial capacity for significant network and spectrum investments. Millicom CEO Marcelo Benitez stated this move strengthens their presence in Colombia and reaffirms their commitment to expanding connectivity and digital transformation in the country.
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