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Millicom International Cellular SA - Stock Quote TIGO

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Millicom Shares Now Trading Without Subscription Rights; Fair Value Estimate to $34

Analyst Note

| Michael Hodel, CFA |

We are adjusting our Millicom fair value estimate to reflect the terms of the equity rights offering that the firm is in the process of completing. The stock is now trading without the right to participate in the offering, meaning that the stock price now reflects dilution from the offering. As a result, our fair value estimate mechanically falls to $34 per share from $51. To entice participation, shareholder received the right to purchase 0.7 shares for each share owned at a price of $10.61 per share, versus a prior share price of around $22. To preserve the economic value of their investment, shareholders must either exercise their rights and purchase additional shares at this heavily discounted price or sell their rights to another investor. The subscription rights are exercisable and will begin trading on May 27. The rights will continue trading until June 8 and can be exercised until June 13. Millicom announced its plans to issue the additional shares last fall to fund a portion of the buyout of its Guatemalan minority partner.

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Millicom International Cellular SA's Company Profile

Business Description

Millicom offers wireless and fixed-line telecom services primarily in smaller, less congested markets or in less developed countries in Latin America. Countries served include Bolivia (100% owned), Honduras (67%), Nicaragua (100%), Panama (80%), El Salvador (100%), Guatemala (100% following the buyout of minority partners in 2021), Paraguay (100%), Colombia (50%), and Costa Rica (100%). The firm’s fixed-line networks reach nearly 13 million homes and businesses while its wireless networks cover about 120 million people. Increasingly, Millicom offers a converged package that may include fixed-line phone, broadband, and pay television in conjunction with wireless services. The firm hopes to spin off portions of its tower business and mobile payments operation over the next couple years.

Contact
2, Rue du Fort Bourbon
Luxembourg, L-1249, Luxembourg
T +352 27759101
Sector Communication Services
Industry Telecom Services
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type
Employees 20,687

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