Breaking News
0

Liberty Latin America in bid to acquire Millicom

TechnologyJan 14, 2019 05:56PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Ramos, CEO of Millicom, poses before an interview with Reuters at the Mobile World Congress in Barcelona

By Liana B. Baker and Arno Schuetze

NEW YORK/FRANKFURT (Reuters) - Liberty Latin America Ltd (O:LILA), a wireless and cable operator in South America and the Caribbean, has approached peer Millicom International Cellular SA (ST:TIGOsdb) with an acquisition offer, Millicom said on Monday.

Millicom's statement came hours after Reuters first reported on the negotiations. The deal would create one of the largest telecommunications carriers in Latin America, giving the combined company more heft to compete with some of the region's biggest players, such as America Movil (MX:AMXL), Telefonica SA (MC:TEF) and AT&T Inc (N:T).

Millicom said it had received a "preliminary highly conditional non-binding proposal" for all of its shares from Liberty Latin America, which is backed by U.S. media and telecommunications mogul John Malone.

"There is no certainty that a transaction will materialize, nor as to the terms, timing or form of any possible transaction," Millicom said. Liberty Latin America declined to comment.

Millicom shares rose 5 percent on the news to close at $70.55 in New York, giving the company a market capitalization of $7.2 billion. Liberty Latin America shares rose 2 percent to $16.90, valuing it at about $3.1 billion.

The potential deal reflects the importance of scale in the Latin American telecommunications market. Inflation, currency fluctuations, corruption and political instability are just some of the challenges facing regional operators.

Millicom offers mobile services to about 51 million customers under the brand Tigo, in nine Latin American countries and the African countries of Chad and Tanzania. Swedish investment company Kinnevik AB (ST:KINVb) had 37.2 percent voting control over Millicom as of the end of December. Kinnevik has been trimming its wireless tower portfolio around the world.

Millicom is listed in Stockholm but also started trading on the Nasdaq earlier this month.

Liberty Latin America, which operates in more than 20 countries across Latin America and the Caribbean, was spun off from Malone's Liberty Global Plc (O:LBTYA) last year. Its consumer brands include VTR, Flow, Liberty, Más Móvil, BTC and Cabletica.

Malone is the largest shareholder of Charter Communications Inc (O:CHTR), the second largest U.S. cable company. He controls about a quarter of the voting power in Liberty Latin America.

Liberty Latin America in bid to acquire Millicom
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email