Millicom, owner of Tigo-branded operations across Latin America and Africa, said it has already closed an agreement to acquire the remaining 45 percent equity interest in Tigo Guatemala from its local partner (Miffin Associates Corp) for a total of USD 2.2 billion in cash. The transaction as announced last week and has been described as the largest ever single foreign investment in the Central American country. It means Millicom now owns 100 percent of Tigo Guatemala, increasing the parent company’s equity free cash flow by around USD 200 million in 2021.
A group of international banks is providing bridge financing, with Millicom intending to refinance the deal by issuing of new long-term debt a new equity rights offering in the first few months of 2022. Tigo Guatemala is currently the leading mobile operator in the country with 11.6 million subscribers, the leading fixed broadband provider with 392,000 subscribers and the second largest pay-TV provider with 567,000 customers.
