Millicom closes Movistar takeover in Nicaragua

17 May 2019

Millicom International Cellular (MIC) has announced that it closed its acquisition of Telefonia Celular de Nicaragua (Movistar) yesterday (16 May). The deal represents one component of the USD1.65 billion triple-takeover agreed in February 2019, which also comprises Telefonica Moviles Panama and Telefonica de Costa Rica. The Nicaraguan transaction – valued at EUR379.0 million (USD430.0 million) – is the first one of the Central American deals to close.

Movistar leads the Nicaraguan mobile market with approximately four million subscribers and presides over a 4G network which covers 51% of the population. Going forward, the unit will be merged with Tigo Nicaragua, which offers B2B services as well as residential HFC connectivity in capital Managua.

A statement issued by MIC notes: ‘The transaction accelerates the execution of Millicom’s fixed-mobile convergence strategy, it helps consolidate the company’s leadership position in Central America, and it diversifies and balances the geographic footprint of the company in its mission to build digital highways that connect more users and develop communities throughout the region.’