Colombia's Ola To Spend $200 Million On Mobile Network In 2007
BOGOTA -(Dow Jones)- Colombia's third largest mobile telephone company, Colombia Movil, will invest $200 million in 2007 to upgrade its mobile network, the company's recently-appointed chief executive, Jose Manuel Astigarraga, said Monday.
The firm, which operates under the Ola brand, plans to extend the regional coverage of its network and improve the quality of its services, Astigarraga told reporters at a press conference.
In September, mobile telecommunication operator Millicom International Cellular bought a 51% stake in Ola for about $479 million. State-owned Empresa de Telecomunicaciones de Bogota and Empresas Publicas de Medellin, or EPM, own the remaining 49%.
The three partners' respective contributions to the 2007 investment program will be made in proportion to their stake in the company.
Astigarraga also said Millicom and its partners decided to rebrand Ola as Tigo. Millicom plans to use this brand in 17 countries where it currently operates.
Millicom and its partners will stick to the existing plan to sell shares of Colombia Movil on the Colombian stock market, Astigarraga said. For regulatory reasons, Colombia Movil has to offer 17% of its capital on the Colombian stock market before February 2007. Colombia Movil is looking for an investment bank to carry out the IPO.
Part of the financing of Colombia Movil's investment plan for 2007 will come from the proceeds of the share sale.
-By Inti Landauro, Dow Jones Newswires; 571-600-1980; inti.landauro@dowjones.com
(Luis Enrique Hurtado contributed to this article.)
(END) Dow Jones Newswires"
Posted to the site on 27th November 2006
