Key Developments: Millicom International Cellular SA (MIICF.PK)
84.14USD
24 May 2013
$-0.17 (-0.20%)
$84.31
$84.45
$84.61
$84.14
3,421
10,843
$97.00
$76.25
Latest Key Developments (Source: Significant Developments)
Millicom International Cellular SA Issues USD 500 Million Seven-Year Corporate Bond
Millicom International Cellular SA announced that it has successfully issued a United States Dollar-denominated bond. The Company has successfully completed the issuance of a seven-year USD 500 million bond with a fixed coupon of 4.75%. The issuance was done at 99.266 and the demand for the bond reached USD 3.9 billion primarily from the United States and Europe. The bond will be listed in Luxembourg. The Company intends to use the majority of the proceeds to refinance debt maturing in Africa in 2013. Full Article
Millicom International Cellular SA Comments on FY 2013 EBITDA Margin Guidance
Millicom International Cellular SA announced that it expects to report fiscal year 2013 Group EBITDA margin to be above 40% (excluding Online) and to decline at a lower rate than over the past twelve months. Full Article
Myanmar Names Millicom International Cellular SA And Other Bidders In Race For Two Mobile Licences-Reuters
Reuters reported that Myanmar has announced the names of 12 international consortia that have pre-qualified to bid for two mobile licences, moving closer to opening one of the last major untapped mobile markets. The companies include Bharti Airtel Ltd, China Mobile Ltd, KDDI CORP, MTN Group Ltd, Singapore Telecommunications Ltd, Telenor ASA and Digicel, a group backed by billionaire George Soros. The pre-qualified applicants will be required to submit their applications to the committee by June 3, 2013. The committee expects to announce the names of two winners to receive 15-year telecommunications licences by June 27, it said. China Mobile has teamed up with Vodafone Group Plc, while France Telecom SA is working with Marubeni Corporation, and Africa's MTN with M1 Telecom and Amara Communications. SingTel has joined with Myanmar Telephone Co Ltd and KBZ, while KDDI has teamed up with Japan's SUMITOMO CORP and Myanmar Information and Communication Technology Development Corp. Other pre-qualifiers are Axiata Group Bhd, Millicom International Cellular SA, Qatar Telecom QSC and Viettel Group. The bidding has attracted wide interest from international telecoms firms, which see huge opportunities in a country of 60 million where mobile penetration is just 5%-10%, compared with rates of over 100% in many developed markets. Full Article
Millicom International Cellular SA Increases Stakes in Latin America Internet Holdings and Africa Internet Holdings; Maintains FY 2015 EBITDA Guidance
Millicom International Cellular SA announced that it has on March 5, 2013 committed to exercise the option to increase its stakes in Latin America Internet Holdings (LIH) and Africa Internet Holdings (AIH) from 20% to 35%. A cash injection of EUR 85 million will be made into LIH and AIH through capital increases depending on the businesses’ needs. The Company’s ownership in the two holdings will increase to 35% and the Company will continue to fully consolidate its online investment. The Company also reiterates its previously-communicated targets to reach EBITDA break even for online in fiscal year 2015 overall and with accumulated EBITDA losses of no more than EUR 250 million. Previously discussed revenue growth ambitions over the medium term remain. Full Article
Millicom International Cellular SA Proposes FY 2012 Dividend of USD 2.64 per Share; Issues FY 2013 EBITDA Margin Guidance
Millicom International Cellular SA announced that its Board will propose a fiscal year 2012 dividend of USD 2.64 per share o the AGM to be convened on May 28, 2013. The Company also announced that it expects fiscal year 2013 EBITDA margin to be above 40% (excluding Online) and to decline less than over the past twelve months. Full Article
Millicom International Cellular SA Announces Negotiations with Empresas Publicas de Medellin ESP Regarding Potential Combination of Telecom Businesses in Colombia
Millicom International Cellular SA announced that it has entered into exclusive negotiations with Empresas Publicas de Medellin ESP (EPM) regarding the possible combination of their Colombian telecom operations. EPM is an industrial and commercial conglomerate owned by the municipality of Medellin. It is the main shareholder of UNE EPM Telecomunicaciones (UNE) which provides cable TV and fixed telephony services across the region encompassing Medellin, the second city in Colombia. UNE owns 25% of Colombia Movil (Tigo Colombia), in which Millicom owns 50% and one share. The purpose of the negotiation is to evaluate the possibility of a merger between the holding company that owns 50% of Colombia Movil- Tigo- and UNE EPM to create an integrated telecommunication operator in Colombia. Millicom and EPM have partnered successfully for the past six years as the companies jointly own Tigo Colombia together with ETB (Empresa de Telecomunicaciones de Bogota) from Bogota. More recently, UNE has started offering mobile services, in part through a roaming agreement with Tigo Colombia. As a consequence, both parties agree that it is the right time to consider integration of the businesses, with a shareholders' agreement similar to what has been successfully governing the relationship over the past six years. Full Article
Fitch Ratings Assigns Initial Issuer Default Rating to Millicom International Cellular SA-Reuters
Reuters reported that Fitch Ratings has assigned an Initial Issuer Default Rating (IDR) to Millicom International Cellular SA. Local Currency IDR is 'BB+' and Foreign Currency IDR is 'BB+'. The Company’s ratings reflect its geographically diversified portfolio, main market positions in most of its markets, value-added services orientation, expectation of moderate leverage, good liquidity and pre-dividend free cash flow (FCF) generation. The ratings are tempered by exposure to markets with low sovereign ratings and low GDP per capita, pricing pressures, debt allocation between subsidiaries and holding company, shareholder returns policy and recent M&A activity. The Company's focus on growing value-added services (VAS) should also alleviate pressures from voice revenues, especially in Latin American markets where penetration is approaching a mature stage. The ratings incorporate the Company's exposure of its operations to countries with low sovereign ratings, which tend to be more politically unstable and more volatile in terms of economic growth. This adds currency risk, as part of its debt is denominated in USD and cash flow is generated in local currencies. For the 12 months ended September 30, 2012, approximately 82% of EBITDA and 84% of operating FCF was generated by Central and South American operations. The African operations, with the exception of Tanzania, are not expected to generate significant cash flow over the next few years. Full Article
Millicom International Cellular SA's Tigo Paraguay Issues 10-Year Bond
Millicom International Cellular SA (Millicom) announced that its subsidiary in Paraguay (Tigo Paraguay) has completed the issuance of a 10-year USD 300 million bond with a fixed coupon of 6.75%. The issuance was done at par and more than 12 times oversubscribed. The bond will be listed in Luxembourg. Tigo Paraguay intends to use the proceeds for general corporate purposes, including financing investments in cable and mobile infrastructure. Paraguay is Millicom’s main market for products and services. Full Article
Millicom International Cellular SA Announces Further Details on FY 2011 Extraordinary Dividend
Millicom International Cellular SA announced that its Extraordinary General Meeting (EGM) has decided to distribute a gross dividend to the Company’s shareholders of USD 3.00 per share, as per the proposal of the Company’s Board of Directors, corresponding to an aggregate dividend of approximately USD 300,000,000 to be paid out of the Company’s undistributed profits of the year ended December 31, 2011 of USD 528,206,964 which have been carried forward as per the decision o f the Annual General Meeting of May 29, 2012. The dividend will be paid to shareholders/ SDR (Swedish Depository Receipt) holders who are registered in the shareholders’ registry kept by Millicom, Euroclear Sweden AB or American Stock Transfer & Trust Company (AST) as of December 11, 2012 (the Dividend Record Date). The ex-dividend date is estimated to be December 7, 2012. Payment of the dividend is expected to occur on December 14, 2012. Full Article
Millicom International Cellular SA Renews License in Colombia
Millicom International Cellular SA announced that it renewed its license in Colombia via an affiliate Colombia Movil for another 10 years. In February 2013, the Company will pay COP 93,000 million (approximately USD 51 million). The final consideration to be paid for the renewal and 50 MHz of spectrum in the 1,900 MHz spectrum band will be determined by the Tribunal de Arbitramiento (Arbitrage Court) in the next 12 -18 months. Full Article
BRIEF-Millicom issues 7-year corporate bond
STOCKHOLM, May 20 - Millicom International Cellular SA : * Issues 7-year corporate bond
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