Xavier Niel’s funding agency already has a 29% stake in Millicom
French businessman Xavier Niel’s Atlas Investissement is seeking to buyout Latin America-focused operator group Millicom, providing to buy the shares it doesn’t already personal in a deal valuing the provider at roughly $4.1 billion.
Millicom, headquartered in Luxembourg, offers fastened and cellular telecom companies beneath the Tigo model to greater than 50 million subscribers in Latin America. Particularly, it serves clients in Bolivia, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Paraguay. Based on the provider, it did $5.6 billion is gross sales final yr.
Atlas already has a 29% stake in Millicom, and first revealed it was contemplating making a buyout provide in Might. On Monday, it mentioned it’s going to provide $24 a share in money. Millicom’s impartial board committee, nonetheless, has rejected the worth, stating it’s too low as a consequence of anticipated future monetary efficiency. Analysts, although, has pointed to the combined efficiency of Millicom’s Latin American operations over the previous few years as the results of a unstable economic system and unreliable demand.
“Atlas desires to proceed increasing the attain and capability of Millicom’s networks and distribution capabilities to develop its buyer base and higher leverage its complete telecom experience,” Atlas mentioned in an announcement.
In 2021, Millicom partnered with for Parallel Wi-fi for the deployment of O-RAN-compliant Open Radio Entry Community (Open RAN) structure in Colombia, with the purpose of delivering 4G service protection in 362 rural websites throughout the nation.
Niel is the founding father of French telecommunications supplier Iliad Group.