Millicom still not happy with Atlas Luxco's revised offer

The independent committee of Millicom's board recommended rejecting Atlas Luxco’s new offer for the Latin America-focused telco.

In a Friday press release, the Luxembourg-based company said the offer “significantly undervalues Millicom’s shares and SDRs,” i.e., Swedish depositary receipts.

The committee said the increased offer price of US$25.75 per common share and SDR is still below Millicom's value. Millicom’s shares traded at US$25.59 on the Nasdaq on Thursday.

Nordea Bank also deemed Atlas Luxco’s offer “not fair,” according to the press release.

Atlas is Millicom’s biggest shareholder with a 29% stake.

Since the offer price was revised on August 2, Millicom announced one M&A deal in Colombia and one in Costa Rica, as well as announcing talks to sell its towers. 

In Colombia, the company reached a non-binding agreement with Telefónica for the potential takeover of Coltel for US$400mn in cash and the potential acquisition of EPM’s stake in TigoUne. Millicom has also agreed to combine Tigo and Liberty Latin America operations in Costa Rica.  

“The independent committee’s review of the revised offer price also took into account Millicom’s strong financial results for the second quarter of 2024,” the release said. 

Millicom reported year-on-year Q2 revenue and operating cash flow growth of 4.7% and 50.2%. The company expects equity free cash flow to exceed US$600mn this year.