COLOMBIA BUSINESS NEWS – Millicom the international telecommunications and media company, announced today the completion of the merger of its Tigo mobile business with the cable and fixed line operator UNE, owned by Empresas Públicas de Medellín (EPM).
The merger of the two operations will:
- create a business offering a comprehensive range of bundled digital services to millions of households including mobile and fixed telephony, mobile and fixed products
- exploit the complementary offerings of Tigo with UNE and its affiliates and
- execute a key component of Millicom’s strategy to double revenue by 2017 and increase its profitability.
The Board of the new company comprises four Non-Executive Directors from Millicom and three from EPM. There will be a meeting of the new Board later today after which it will announce the appointment of the company’s officers and management.
The combined company will generate more than $2bn annual revenue and have over eight million customers.
Commenting on the completion of the merger today, Millicom President & CEO, Hans-Holger Albrecht said:
“I am delighted that we have been able to conclude the merger with our colleagues at EPM and UNE and thank everyone involved in its successful conclusion. Together, we are creating a strong and exciting telecommunications and media business which will provide a full range of digital services and a new choice for the people of Colombia. But now it’s time for the hard work as we start the integration process. So I wish all our current and new colleagues well as they work to bring to Colombia’s consumers the benefits of a strong new competitor.”
The Growing Colombian Economy
The merger takes place during a continuing period of strong economic growth, with Colombia’s GDP rising by 6.4% in the first quarter and twelve-month growth forecast by the IMF to be 4.5% in 2014. Medellin, the home city of UNE, was named by the Urban Land Institute and the Wall Street Journal as the “Most Innovative City” in the world in 2013 ahead of New York and Tel-Aviv.
Millicom confirmed that its group net debt will increase by a total consideration of around $1.3 billion and the newly-combined company will be fully consolidated from today.