Liberty Latin America terminates Millicom takeover talks

23 Jan 2019

Liberty Latin America (LLA) has announced that it has terminated conversations with Millicom International Cellular (MIC) regarding a potential takeover transaction, adding: ‘The company remains focused on its growth strategy to deliver value for shareholders and provide market leading products and services to its customers.’ If combined, the two entities would have created a regional telecoms giant with operations spanning South America, Central America and the Caribbean. The abrupt cancellation of talks – which only commenced on 14 January – means that LLA is now free to bid against MIC for Telefonica’s unwanted assets in Central America.

Founded in 1992, MIC is headquartered in Luxembourg, and currently operates ‘Tigo’-branded wireless providers in Latin America (Honduras, El Salvador, Guatemala, Bolivia, Paraguay and Colombia) and Africa (Chad and Tanzania). Fixed line services, meanwhile, are offered in El Salvador, Costa Rica, Honduras, Guatemala, Nicaragua, Colombia and Panama. MIC’s main shareholder is currently Stockholm-based Investment AB Kinnevik which held a 37.2% stake as of 30 September 2018 (most recent data). No other stakeholder owns more than 10%.

LLA was established in December 2017, following a ‘split-off’ from Liberty Global plc; it operates in more than 20 markets across Latin America and the Caribbean.