ETB buyout brings Tigo-Une merger one step closer

The planned merger of Une-EPM and Tigo Colombia has taken a step forward with the announcement that Une has purchased the 24.99% stake in Tigo owned by fellow state-owned telco ETB for USD240 million, increasing its holding in Tigo to 49%. Local news portal Elespectador.com writes that Une closed a deal last Friday to purchase 10.8 million ordinary shares at a rate of USD22.22 per share. A spokesperson for Une announced that the company expects to complete the merger in the first half of 2014. According to TeleGeography’s GlobalComms Database, in July 2013 Millicom International Cellular (MIC), which owns 51% of Tigo, announced that it had reached an in-principle agreement with Une-EPM regarding a potential tie-up. Under the terms of the deal, Une-EPM would hold a majority equity interest in the enlarged telco, owning 50% plus one share whilst MIC would own the remaining shares. Despite this, MIC would assume operational and administrative control of the combined company, which will be fully consolidated.