Millicom International Cellular S.A. (Tigo) announced that it has completed the purchase of Telefonica’s 100 % interest in its Chilean mobile business, a transaction valued at USD 1.215 billion. The deal was executed in partnership with French holding company NJJ, which will hold a 51 % stake while Millicom retains 49 %.
The transaction structure protects Millicom’s balance sheet: the acquired business will not be consolidated and all existing debt is non‑recourse to Millicom. Millicom paid an upfront consideration of USD 50 million and will earn out up to USD 150 million based on future performance. Telefonica will contribute CLP 79 billion (about USD 92 million) at closing to shore up the balance sheet of the Chilean unit.
Millicom’s entry into Chile marks its first foray into a prepaid‑dominant market, expanding its footprint across Latin America. The partnership with NJJ—controlled by Millicom’s largest shareholder Xavier Niel—provides strategic alignment and financial flexibility. Millicom will operate the Chilean business from day one, applying its proven operational playbook to stabilize and grow the asset, while retaining the ability to acquire NJJ’s stake in years five and six at a discount to market multiples.
The deal aligns with Telefonica’s broader divestment strategy in Spanish‑speaking Latin America, allowing the Spanish operator to focus on core markets while monetizing non‑core assets. For Millicom, the transaction adds a new market to its portfolio, diversifies revenue streams, and demonstrates its disciplined approach to regional expansion, as evidenced by recent acquisitions in Ecuador, Uruguay, and Colombia.
Millicom’s 2025 financials—record adjusted EBITDA of USD 695 million and a 48.9 % margin—provide the financial strength to pursue this expansion. The Chilean acquisition is expected to enhance Millicom’s long‑term value creation by leveraging local market knowledge, achieving scale, and maintaining balance‑sheet protection through the non‑consolidated structure.
The transaction underscores Millicom’s strategy of disciplined, partnership‑driven growth in Latin America, positioning the company to capture opportunities in emerging prepaid markets while safeguarding financial health.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.