Millicom to Acquire Telefonica's Stake in Coltel for $400M

Millicom has announced a major acquisition, seeking to purchase Telefonica's 67.5% stake in Coltel for $400 million. This strategic move could influence stock prices significantly as it involves large financial commitments and potential regulatory hurdles.

Date: 13-03-2025

AI Rating: 6

Strategic Acquisition: Millicom's planned acquisition of Telefonica's controlling stake in Coltel for $400 million indicates a significant strategic move. The deal requires regulatory approvals and will close once these conditions are met.

Purchase Price Adjustments: The agreed purchase price of $400 million is subject to adjustments based on net debt, working capital, and foreign exchange rates. By September 30, 2024, it is expected to be approximately $362 million after these adjustments.

Valuation Considerations: Millicom is also looking to acquire a 50% stake in UNE from its partner, utilizing a valuation multiple similar to the one derived from the Coltel acquisition, indicating that Millicom is focused on strategic growth through acquisitions.

Stocks: MICO