The independent committee of Millicom’s Board of Directors has thoroughly reviewed Atlas Luxco’s latest offer of $25.75 per common share and concluded that it still undervalues the company. The board had previously recommended shareholders reject an initial $4 billion offer, and it remains unclear what price might be sufficient to secure a sale.
The board’s analysis of Atlas Luxco’s bid is complex, citing Millicom’s improved performance since the first bid, among other factors. It also highlights that the offer falls short when measured against standard enterprise value metrics. Furthermore, the committee compared the price premium offered to similar mergers and acquisitions, demonstrating that Atlas Luxco’s revised bid is still considerably lower than what might be expected in the current market.
These comparisons may offer hints about what the board would consider an acceptable bid. However, with the two parties seemingly far apart in their negotiations and the broader macroeconomic environment remaining uncertain, it is difficult to predict if Atlas Luxco will meet the board’s expectations.
The board also emphasized the potential impact of the acquisition on Millicom’s employees, possibly indicating concerns about Atlas Luxco’s future plans for the company. Despite these reservations, the board’s stance suggests that they are open to negotiations, provided the offer accurately reflects Millicom’s value. As it stands, though, Atlas Luxco’s bid is not sufficient to secure a deal.
