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Millicom buys majority stake of Panamanian Cable Onda for $ 1.46 billion

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  • Mon, 10/08/2018 - 14:51
Millicom
  • EFE

Millicom International Cellular SA, whose main brand is Tigo, bought for $ 1.60 billion the 80 percent shareholding of the company Cable Onda, the largest provider of pay television and fixed telecommunications services in Panama.

Cable Onda reported today that the commercial agreement includes its Telecarrier and Fronteras Security companies, that the negotiation is subject "to the conditions of closure and the consensus of Cable Onda's bondholders," and that it is expected to be concluded "by the end of 2018".

Millicom is a provider of cable and mobile services dedicated to emerging markets in Latin America and Africa, and in 2017 it reported revenues of $ 6 billion, according to data released by Cable Onda.

The Panamanian company said Sunday in a public statement that the trade agreement "will offer new opportunities for growth and development" for workers of "both companies, and innovation in products and services for the benefit of customers".

It also "constitutes a new foreign investment for Panama, which will bring socioeconomic development for the country and the sector," said Cable Onda, which retains the 20 percent shareholding in the company.

According to data released on Sunday officially, Cable Onda is the largest provider of pay television and fixed telecommunications services in Panama, and as of December 31, 2017 served 433,000 residential customers and 34,000 commercial and government customers.

For the year ended December 31, 2017, Cable Onda reported revenues of $ 374 million, earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 160 million, tax expenditures of $ 20 million, and invested $ 85 million in capital expenditures.

The general manager of Cable Onda, Nicolás González, affirmed that the company is "pleased to be a member of Millicom" which is "clear leader in most of the markets it serves".

"We achieved a wide complementarity that adds the background and knowledge of the local market of Cable Onda, with the international experience offered by a group such as Millicom," added the general manager.

The CEO of Millicom, Mauricio Ramos, said that the vision of the company "is to work with our strong local partners and with all the employees of Cable Onda, to extend the leadership of the company in the market and continue to provide and expand the portfolio of digital services to many Panamanians".

"The result of this agreement will make a more solid and competitive organization and deepen investment in technology, to reaffirm the leadership in the market segments to which Cable Onda directs its products and services," the Panamanian company added in its public statement.

Millicom is a leading provider of cable and mobile services dedicated to emerging markets in Latin America and Africa, and its main brand is Tigo, according to official information.

As of December 31, 2017, Millicom employed more than 19,000 people and provided mobile services to approximately 51 million customers, with a coaxial fiber optic network covering more than nine million households.

Founded in 1992, Millicom International Cellular S.A is headquartered in Luxembourg and is listed on Nasdaq Stockholm under the symbol MIC_SDB. Millicom has announced plans to also list its shares in the United States in 2019, added the official information.

Source-EFE

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