Millicom (Tigo) has signed a definitive agreement with Telefónica to acquire its controlling 67.5% stake in Colombia Telecomunicaciones S.A. (Coltel), advancing plans to consolidate its presence in the Colombian telecom market. The deal, first announced in July 2024, is valued at $400 million, subject to customary adjustments related to net debt, working capital, and foreign exchange fluctuations. As of September 30, 2024, the adjusted purchase price stands at $362 million. Millicom also intends to offer to purchase the remaining 32.5% equity from La Nación and other minority investors under the same terms.
The transaction, pending regulatory approvals, aims to create a stronger telecom entity in Colombia with greater financial capacity and scale to invest in critical network and spectrum initiatives. The combined operation is expected to better address Colombia’s digital inclusion goals by expanding coverage and boosting competitiveness in the local telecom sector.
In addition, Millicom reaffirmed its interest in acquiring its partner’s 50% stake in UNE (a separate joint venture) at a price based on a similar valuation multiple to the Coltel deal. The move aligns with Millicom’s strategy to consolidate assets and enhance its footprint in key Latin American markets.
• Millicom to acquire Telefónica’s 67.5% controlling stake in Coltel for $400 million (subject to adjustments).
• Millicom will also make an offer to acquire the remaining 32.5% equity held by La Nación and other investors.
• The combined entity is set to boost network investment capacity to meet Colombia’s digital inclusion targets.
• Millicom is also pursuing the purchase of its partner’s 50% stake in UNE using a similar valuation approach.
• Regulatory approvals are pending for the completion of the transaction.
“This transaction strengthens our presence in Colombia, and with this strategic move, Millicom reaffirms its ongoing commitment to expanding connectivity and coverage, accelerating digital transformation, and actively contributing to Colombia’s continued growth and competitiveness,” said Marcelo Benitez, CEO of Millicom.
- Millicom, headquartered in Luxembourg, is a leading provider of cable and mobile services under the Tigo brand, operating primarily in Latin America. The company serves over 50 million customers across its footprint, offering a range of digital services, including mobile voice and data, broadband internet, cable television, and mobile financial services. Millicom has been actively expanding its presence in Colombia, Bolivia, Paraguay, Guatemala, and other key markets, focusing on building next-generation networks and advancing digital inclusion in underserved regions. The company has positioned itself as a major player in driving digital transformation and infrastructure development across Latin America.
