Millicom Increases Investments in Online Ventures
Published on: 5th Mar 2013
Note -- this news article is more than a year old.
Millicom has announced that it is to exercise an option to increase its stakes in Latin America Internet Holdings (LIH) and Africa Internet Holdings (A H) to 35%. Millicom said that the performance of its online and e commerce ventures has been strong since the company took an initial 20% stake in these ventures in September 2012.
A cash injection of EUR85 million will be made into LIH and AIH through capital increases depending on the businesses' needs. Millicom ownership in the two holdings will increase to 35% and the company will continue to fully consolidate its online investment.
Millicom also reiterated its previously-communicated targets to reach EBITDA break even for online in 2015 overall and with accumulated EBITDA losses of no more than EUR250 million.
Commenting on the decision, Hans-Holger Albrecht, Millicom President and CEO, said:
"Sooner than we thought, our joint ventures in Africa and Latin America have achieved leading positions in key segments of the growing online market. The opportunities look even greater than when we first decided to invest in them. In Africa e-commerce could hasten the evolution of the established retail sector as consumers increasingly adopt the digital lifestyle. That is why such timely investment is of essence."