Millicom Wins 100% of EPM’s Stake in Tigo-UNE
Medellin-based public utilities and telecom giant EPM announced January 27 that it has finally sold its entire 50% stake in the Tigo-UNE telecom-internet joint venture with Spain-based Millicom.
The deal follows on the heels of Tigo’s earlier agreement to merge operations with telecom rival Movistar to create an internet-cable TV-cell-phone giant that now can compete on equal footing with Mexico-based multinational Claro in the Colombian telecom market.
“Millicom’s bid was COP$418,741 per share, representing a total consideration of approximately COP$2.1 trillion, or approximately US$571 million,” according to Millicom
“This acquisition consolidates Millicom’s ownership in UNE to nearly 100%, following the successful completion of the public divestment process managed by EPM in accordance with Colombian Law 226,” the company added.
EPM – whose sole shareholder is the city of Medellin — thus exits what has been a mostly money-losing business for more than a decade, and now can refocus on its main businesses: electric power generation, electric power distribution, natural gas distribution, drinking-water provision and wastewater-treatment in several Latin American countries.
“EPM, through investment bank BTG Pactual, contacted 22 potential investors to validate their interest in UNE shares, with the aim of identifying interested parties to participate in the share purchase. However, 21 of them did not submit a prequalification envelope,” according to EPM.
Instead, “EPM received only the prequalification envelope submitted by Millicom Colombia Holding S.A.S., which met all the required criterio,” the company added.
