Background on EPM and Millicom
Empresas Públicas de Medellín (EPM), owned by the city of Medellin, recently sold its entire stake in telecommunications company UNE to Millicom’s local subsidiary, Millicom MICC.F, for approximately 2.1 trillion Colombian pesos, equivalent to $571.2 million USD.
Prior to the sale, EPM held 50% of UNE’s shares, while Millicom already owned the other 50%. This transaction consolidates full ownership of UNE under Millicom.
About UNE and its Services
UNE, operating under the brand Tigo, is one of Colombia’s leading telecommunications service providers. The company offers mobile phone services, broadband internet, television, and corporate solutions to its customers.
Payment Details
EPM announced that Millicom has five business days, starting from Wednesday, January 28th, to complete the payment for the acquired shares.
Millicom’s Recent Acquisitions
In March of the previous year, Millicom—headquartered in Luxembourg—agreed to purchase Telefónica’s (TEF.MC) Colombian unit stake for $400 million USD.
Impact on the Telecommunications Sector in Colombia
This acquisition strengthens Millicom’s position in the Colombian telecommunications market, allowing it to expand its service offerings and improve infrastructure. As a significant player in the industry, Millicom’s growth can influence competition, innovation, and consumer choices in telecommunications services within Colombia.
Key Questions and Answers
- Who are EPM and Millicom? Empresas Públicas de Medellín (EPM) is a utility company owned by the city of Medellin, while Millicom is a telecommunications company based in Luxembourg with operations worldwide.
- What is UNE? UNE, operating under the Tigo brand, is a major telecommunications service provider in Colombia offering mobile phone services, broadband internet, television, and corporate solutions.
- Why is this sale significant? The sale consolidates full ownership of UNE under Millicom, strengthening its position in the Colombian telecommunications market and potentially influencing competition, innovation, and consumer choices.
- What does the payment timeline entail? Millicom has five business days, starting from January 28th, to finalize the payment for the acquired shares.
