Millicom-Tigo Buyout of Movistar Expected by April

Spain-based Millicom announced that today (February 6) it will complete purchase of 67.5% of the shares held by Spain-based Telefónica in local telecom competitor Movistar (Colombia Telecomunicaciones) — with the remaining shares held Colombia’s national goverment likely to be acquired by April.

The deal – coming on the heels of Millicom’s buyout of EPM’s 50% share in Tigo-UNE (Colombia) last month — means that Millicom-Tigo soon will have a national share of the Colombian telecom-internet-cable TV market exceeding 40%, putting it on par with Mexico-based Claro’s telecom marketshare in Colombia.

Millicom’s buyout of Telefónica’s 67.5% stake in Movistar carried a price-tag of US$214.4 million, according to the company.

“Millicom is now awaiting phase-2 of the privatization process launched by [Colombia’s national goverment] to acquire the remaining [Movistar-Colombia] shares, expected around April,” according to the company.

“This transaction is intended to strengthen Colombia’s telecommunications sector by creating a financially solid operator with the scale and investment capacity required to deliver critical upgrades in networks, spectrum, and technology.”

Millicom-Tigo’s bolstered market-share will enable “advanced digital services and accelerate the nationwide rollout of fiber and 5G, resulting in faster, more reliable connectivity and an enhanced customer experience,” according to Millicom.

Colombia as a result now becomes one of 11 Latin American nations where Millicom-Tigo is a core competitor, the company added.