Liberty Latin America,VTR Chile, Liberty Puerto Rico and Cable & Wireless (Flow) owner in the Caribbean y Panamá, presented an offer to buy the company Millicom (Tigo). If the arrangement runs, it would create one of the largest telecommunications and Pay TV operator in Latin America. Both companies confirmed the negotiations.
Liberty, controlled by John Malone, is present in Chile through VTR and, as it transcended, it takes a long time negotiating with Millicom, but no agreement was made yet. The company would be trying to sing bank loans and an investment company financing for its offer cash portion.
Millicom operates under the Tigo brand in nine Latin American countries, and it offers Pay TV in seven of them. According to Dataxis, it totalized a bit more than 2.8 million TV subscribers in the last quarter 2018. At the end of December 2018, Swedish company Kinnevik AB owned it in a 37.2%.
At the same time, Liberty Latin America operates in more than 20 Latin American and Caribbean countries, and it offers Pay TV in 18 of then, overcoming 1.8 million subscribers. Last year it broke off with Liberty Global, which, according to experts, would make an agreement easier to run.
These two company’s fusion has been an speculation subject for a long time. There is only a small overlap between its operations in Costa Rica and Panamá.
Millicom said it had received a ‘preliminary highly conditional non-binding proposal’ for all of its shares from Liberty Latin America. “There is no certainty that a transaction will materialize, nor as to the terms, timing or form of any possible transaction,” Millicom officially stated.