Millicom-Tigo Completes Buyout of Government Stake in Movistar
Luxembourg-based multinational telecom giant Millicom (Tigo) announced April 27 that it has finally completed the buyout of the Colombian government’s minority stake in telecom competitor Movistar.
The deal means that Millicom-Tigo is now at par with Mexico-based Claro in dominating Colombia’s telecom market, with both Tigo and Claro holding Colombian market shares well above 40% each.
Under the latest deal, Millicom paid COP$856 billion (US$240 million) for the remaining 1.1 billion shares outstanding (32.5% of total shares) of Movistar, which had been held by Colombia Telecommunications (Coltel), the government entity..
Millicom had earlier bought Spain-based Telefónica’s 67.5% stake in Movistar for US$214.4 million.
Prior to that, Millicom had bought out the Medellin government’s 50% stake in Tigo-UNE, with the result that Millicom is now the 100% owner of Medellin-based Tigo — and will absorb Movistar into Tigo.
“By integrating Coltel fully into its operations, Millicom is creating a large-scale, financially viable operator with the enhanced investment capacity required to accelerate the country’s digital transformation,” according to Millicom.
“The consolidation delivers the scale needed to accelerate nationwide 5G deployment, enhance service quality through combined technical capabilities, and support government efforts to expand digital inclusión — ultimately providing faster, more reliable connectivity and a more seamless digital experience for millions of Colombians.
“The transaction takes place in an evolving competitive landscape, where traditional operators compete with global digital platforms, satellite providers, and other connectivity players. Scale, investment capacity, and operational efficiency are key to remaining competitive,” the company added.
