The independent committee of the Board of Directors of Millicom (Tigo) continues to believe the public cash offers made by Atlas Luxco S.r.l. significantly undervalue Millicoms shares and SDRs and reiterates recommendation not to tender.
The independent committee of the Board of Directors of Millicom, known colloquially by its brand name Tigo, has once again voiced strong opposition to the public cash offers recently proposed by Atlas Luxco S. r.l. In a definitive statement, the committee emphasized unequivocally that such offers fundamentally underestimate the true worth of Millicom’s shares and Swedish Depository Receipts (SDRs).
The Backbone of the Committee’s Position
According to the committee, the intrinsic value of Millicom’s assets, strategic market positioning, and future growth potential provide compelling reasons to reject the cash offers on the table. They have underscored that the proposals do not reflect the company’s robust business model, diversified revenue streams, and the strategic advancements Millicom is undertaking in several burgeoning markets. The committee has articulated that Atlas Luxco’s offers undervalue the company’s true long-term financial potential and ignore the substantial progress Millicom has made to solidify its market leadership.
Why the Offers Fall Short
Millicom has been at the forefront of telecommunications and digital services across Latin America and Africa. The company has demonstrated significant resilience and operational efficiency despite volatile market conditions. In addition, Millicom has been investing vigorously in infrastructure improvements, expanding its digital services, and enhancing its engagement with over 55 million customers in various regions. All these factors, according to the independent committee, contribute to a higher intrinsic value than what is currently being recognized by Atlas Luxco’s offers.
The committee has also cited financial metrics and valuation models to back its argument. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA), strong free cash flow, and the consistent performance in core markets are indicators of a higher valuation. The offers, they argue, overlook these fundamental aspects and result in an offer price that does not capture the full potential of Millicom.
Strategic Imperatives and Long-Term Prospects
Millicom has been actively pursuing a comprehensive strategy focused on digital transformation and financial inclusion. With strategic investments in mobile data, digital services, and fintech innovations, Millicom aims to propel its growth trajectory for years to come. The company has identified significant opportunities in digital adoption in its operational territories, presenting a long runway for growth and innovation.
Furthermore, Millicom’s steadfast commitment to sustainable development goals and digital ecosystem expansion aligns with global trends and regulatory benefits. These initiatives are not just about fleeting gains but are designed to create sustained shareholder value over the long term.
The Reiterated Recommendation
Given these considerations, the independent committee has reiterated its recommendation to Millicom shareholders and holders of SDRs: Do not tender your shares and SDRs under the current terms proposed by Atlas Luxco. The board believes strongly that shareholders are better served by maintaining their stake in Millicom, thereby reaping the benefits of its long-term strategy and inherent market opportunities.
Conclusion
In conclusion, the decisive stance by the independent committee of Millicom’s board highlights a growing awareness and resistance against undervalued acquisitions in the telecommunications sector. The recommendation reflects not only a firm belief in Millicom’s ongoing transformation but also underscores the value that the company’s leadership attributes to its strategic vision and future growth prospects.
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