Millicom to fully acquire Tigo Guatemala joint venture for $2.2B

Luxembourg-based operator Millicom International Cellular SA agreed to take full control of its joint venture Tigo Guatemala by acquiring the remaining 45% equity interest from a local partner for $2.2 billion in cash.

Millicom secured bridge financing from a group of international banks to fund the transaction, according to a Nov. 11 news release.

The company plans to refinance the bridge with a planned issuance of about $1.5 billion of new long-term debt and about $750 million of new equity through a rights offering in the first quarter of 2022.

Millicom expects the stake acquisition to be significantly and immediately accretive to its cash flow and net income. The deal is also expected to increase Millicom's equity free cash flow by about $200 million before incremental financing costs.

Tigo Guatemala has 11.6 million mobile subscribers, 392,000 broadband internet subscribers and 567,000 pay TV customers as of Sept. 30. Its assets include about 4,400 towers, two tier-three data centers and more than 21,000 kilometers of fiber.