Millicom Colombia Unit To Sell 17.6% Stake Via IPO Monday
BOGOTA -(Dow Jones)- The Colombian unit of mobile telephone operator Millicom International Cellular will sell a 17.6% stake through an initial public offering starting Monday, Feb. 5.
Colombia Movil, as the unit is called, plans to raise 185.1 billion Colombian pesos ($82.5 million) with the sale of the shares, the company said Friday.
The shares represent 17.6% of the company's capital, said an official from Colombia Movil who declined to be identified.
The company will close the sale Feb. 23.
Colombia Movil, the third-largest mobile phone operator in the country, is the first significant company to list shares on the stock market since Banco Colpatria Red Multibanca listed its shares in October 2005.
"I won't buy those (Colombia Movil) shares because the risk related to the telecommunications industry is high and because there are better options out there such as Isagen's (shares)," said Edgar Jimenez, who manages a fund of shares with local brokerage Promotora Bursatil.
On Thursday, the Colombian stock exchange authorized state-owned power generator Isagen to sell shares on the stock market.
Isagen plans to sell 2.44 million shares, representing about 19.22% of company's capital, and it plans to raise COP592 billion.
Colombia Movil registered annual losses since its creation in 2003 and its two local shareholders, state-owned Empresa de Telecomunicaciones de Bogota and Empresas Publicas de Medellin, or EPM, had already poured about $660 million in the company before selling a controlling stake to Millicom.
Millicom, based in Luxembourg, paid about $479 million in 2006 for 51% of Colombia Movil and plans to spend $200 million in upgrading the wireless network in 2007, part of which will come from the proceeds of the IPO.
Colombia Movil set a limit on the amount of shares investors can buy in the company. Investors must buy at least 500 shares, requiring a minimum total investment of COP10 million.
The wireless operator is trying to lure investors with deep pockets, Jimenez said.
Corredores Asociados, Interbolsa, Correval, Casa de Bolsa and Serfinco are the brokerages that will be selling Colombia Movil shares, Andres Ortiz, Corredores Asociados' commercial vice president, said Thursday.
Colombia Movil also hired investment bank Corporacion Financiera Colombiana SA to structure the sale.
--By Diana Delgado, Dow Jones Newswires; 571-600-1980, diana.delgado@dowjones.com
(END) Dow Jones Newswires"
Posted to the site on 4th February 2007