Millicom acquires total stake in Tigo Guatemala

Millicom acquired full control of Tigo Guatemala after signing a contract for the missing 45% of the capital stock in the region’s operations. Following a payment of USD 2.2 billion, the company now has a 100% stake in the company. As stated by the telco, this strategy consolidates its place as the leading provider of telecommunication services in Central America.

According to its Q3 2021 report, by the end of the quarter of this year Tigo Guatemala became the main mobile player after exceeding 11 million subscribers. In addition, it also led the competition in broadband Internet service, with which it reached 392 thousand users, and positioned itself as the second pay TV provider in the country, with 567 thousand clients.

Mauricio Ramos, CEO of MIllicom, stated about the Guatemalan operator’s acquisition process: “The transaction is in line with our established inorganic capital allocation strategy, which includes the acquisition of the remaining minority interests owned by third parties in our operations, when those transactions can be executed cumulatively”.

“For Millicom, this new investment reflects our continued confidence in Guatemala’s prosperous economy and our renewed commitment to the digital transformation of its society. With this transaction, we will transform Millicom’s financial profile, significantly increase our cash flow and net income, and greatly simplify our structure”, he added.