UNE/Tigo merger to be completed in early May 2014

5 Nov 2013

The merger of UNE EPM and Tigo Colombia, the local unit of Millicom International Cellular (MIC), is expected to be completed in early May 2014 Marc Eichmann, president of UNE told Dinero.com. Eichmann noted that the combined entity would expect to end the first year with a negative impact of around COP100 billion (USD52.54 million), although synergies would kick in over the following two or three years to reverse the disruption. The official added that the enlarged company was looking to spend ‘close to COP500 billion’ on expanding its fibre-optic cable and Long Term Evolution (LTE) footprints as well as building a new data centre. According to TeleGeography’s GlobalComms Database, the merger will see UNE hold a majority equity interest in the enlarged telco, owning 50% plus one share whilst MIC would own the remaining shares. Despite this, MIC will assume operational and administrative control of the combined company, which will be fully consolidated.

Colombia, Colombia Movil (Tigo Colombia), Une EPM Telecomunicaciones (Tigo Colombia)