Millicom International Cellular Stock Soars On Takeover Report - Read Who Is Interested In This LatAm Company

Anusuya Lahiri
1 min read
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In this article:

  • Buyout group Apollo Global Management, Inc (NYSE: APO) has partnered with former Softbank Group Corp (OTC: SFTBF) executive Marcelo Claure to explore a takeover of Millicom International Cellular S.A. (NASDAQ: TIGO).

  • The takeover proposal could value the Latin American telecoms company at almost $10 billion, including debt, Financial Times reports.

  • The group weighed a bid at high teens per share price, valuing the business at roughly $9 billion.

  • Given the turbulence in financial markets and high-interest rates, Apollo and Claure tried to dodge repaying or refinancing roughly $6.9 billion of Millicom’s existing debts.

  • Millicom is based in Luxembourg but operates predominantly in Latin America under its Tigo brand for mobile and cable services.

  • Millicom’s stock got hit by the weak Colombian peso and concerns around the company burning through cash during the first nine months of 2022.

  • A complex macro environment and high inflation have raised questions about the group’s ability to hit a three-year target for equity-free cash flow.

  • Price Action: TIGO shares traded higher by 14.90% at $17.04 on the last check Wednesday.

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This article originally appeared on Benzinga.com

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