Millicom’s board has advised shareholders to reject Atlas Investissement’s buyout offer. This recommendation comes from an independent committee that represents the board of Millicom, a significant player in Latin American telecommunications. Two weeks ago, Atlas, holding 29% of Millicom, proposed to purchase the remaining shares for $24 each.
The board believes the offer undervalues Millicom, considering its financial outlook. In regulatory statements filed this week, the board expressed its stance that the price is “well below trading multiples for comparable listed companies.” The filing also noted that the proposed offer does not sufficiently reflect Millicom’s long-term plans and potential revenue. Millicom projects its equity free cash flow to reach $659 million in 2024, $701 million in 2025, and $833 million in 2026.
Millicom, headquartered in Luxembourg, operates under the Tigo brand, offering fixed and mobile services to over 50 million subscribers across Latin America. Its market presence includes Bolivia, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and Paraguay. Last year, Millicom reported $5.6 billion in sales.
This rejection highlights Millicom’s confidence in its financial projections and growth strategy. The board’s decision aligns with its belief that the company is set to generate significant cash flows in the coming years, which could enhance shareholder value beyond the current offer.
