In a strategic move, Liberty Latin America Ltd. (LLA) and Millicom have joined forces.
The all-stock agreement will see Liberty Latin America and its minority partner assume an 86% stake in the combined operations, while Millicom retains 14%.
As of December 31, 2023, the joint operations boasted an adjusted OIBDA of approximately $255 million, serving a substantial base of over 440,000 broadband subscribers.
Their shared vision is to accelerate the transition to fiber-to-the-home (FTTH) technology, revolutionizing internet connectivity for Costa Ricans.
Balan Nair, President and CEO of Liberty Latin America, expressed: “Costa Rica is a great country to operate in, and Liberty Costa Rica is a strong business for us. By combining Liberty and Tigo, we can deliver exceptional high-speed services, enhance customer experiences, drive innovation, and create growth opportunities.”
Mauricio Ramos, Chair of Millicom, said: “Our combined operations will significantly boost fiber network investment, propelling Costa Rica's technological evolution in a highly competitive market. This merger isn't just about business—it's about empowering our customers with top-tier connectivity.”
The transaction awaits customary closing conditions and regulatory approvals, with completion anticipated in the second half of 2025. Liberty Latin America received advisory support from JP Morgan, while Millicom turned to Aldo J. Polak and FTI Consulting.
As Costa Rica embraces this transformative partnership, citizens can look forward to faster speeds, broader coverage, and seamless digital experiences. The future is fiber-infused, and the stage is set for Costa Ricans to thrive in the digital age.
Potential Acquisitions in Colombia
Millicom and Telefonica announced that they have entered a non-binding memorandum of understanding for the potential combination of Telefonica Colombia (Coltel) and TigoUne.
The discussions include the potential acquisition by Millicom of Telefonica’s stake in Coltel for approximately $400 million in cash, informed the companies.
Millicom also intends to offer to purchase La Nación’s and other minority interests in Coltel at the same purchase price per share offered to Telefonica. Additionally, Millicom intends to offer to purchase Empresas Públicas de Medellin’s (EPM) 50% interest in TigoUne at a comparable valuation multiple as the one implied by the Coltel acquisition.
Millicom plans to fund the proposed aggregate investment of approximately $1 billion in cash and assumed debt with equity free cash flow projected over the next 18 months, consistent with the company’s long-range plan.
