Key Developments For Millicom International Cellular S.A.
Millicom International Cellular S.A. (MICC.O) (Nasdaq)
Millicom International Cellular S.A. Acquires Colombia Movil
Millicom International Cellular S.A. announced that it has acquired control of Colombia Movil S.A. E.S.P., the third mobile operator in Colombia, which operates under the Ola brand. Ola has an estimated 9% market share in a country of over 43 million people. The Company is acquiring 21.6 million new shares of Colombia Movil, which represents a 50% plus 1 share controlling stake in the Company, for a consideration of USD125 million. Including this initial equity contribution, the Company expects to invest a total of approximately USD200 million of new equity in Colombia Movil within the next three years. The Company's investment will be fully funded by way of new debt in another wholly owned Millicom Latin American subsidiary, so that Millicom will not be drawing down its current Corporate cash reserves for this investment.
Millicom International Cellular S.A. Wins Control Of Colombia's Mobile Ola-Dow Jones
The Dow Jones International News reported that Millicom International Cellular SA has won control of Colombian mobile operator Ola with a revised bid of 1.15 trillion Colombian pesos ($478.5 million) at an auction on August 31, 2006. Ola is the smallest mobile telephone operator in Colombia.
China Mobile Agreement To Acquire Millicom International Cellular S.A. Fails-WSJ
The Wall Street Journal reported that Millicom International Cellular S.A. ended talks with China Mobile Communications Corp. just hours before the Company's executives were due to fly to Beijing to announce the $5.3 billion sale of the Company. The Company announced that negotiations ended because the buyer won't be in a position within an acceptable timeframe to make a binding offer that is suitably attractive, given the current strong performance of the business. The Company's shares, listed on the Nasdaq Stock Market, were down 27%.
China Mobile (Hong Kong) Limited's State Parent Buys Millicom International Cellular S.A.-Reuters
Reuters reported that the state parent of China Mobile (Hong Kong) Ltd. has bought Millicom International Cellular this month, the Standard said. The newspaper did not disclose a purchase price, but said China Mobile Communications, which had made only the second-highest offer, won the bid after Investcom, dropped out of the bidding process. Hong Kong's South China Morning Post reported last month the deal could amount to $4 billion in cash.
Millicom International Cellular S.A. Buys out Two Further Minority Partners
Millicom International Cellular S.A. announced that it has completed two further buyouts of its minority partners. Millicom has acquired the outstanding 25% minority share in Sentel GSM SA, its mobile operation in Senegal, and has also reached agreement, conditional on regulatory approvals being obtained, to acquire the outstanding 4% share in Telefonica Celular del Paraguay SA, its operation in Paraguay. Following these transactions, Millicom now has 100% ownership of these two operations. Price paid was not disclosed.
