Millicom Agrees Options over Ownership of Guatemalan Mobile Network
Published on: 16th Jan 2014
By: Ian Mansfield
Millicom and its partner in Tigo Guatemala have signed agreements relating to the possible future sale of their stakes in the local mobile network.
Under the agreement, Millicom's local partner in Guatemala, Miffin Associates, has granted Millicom an unconditional call option for its 45% stake with a minimum term of two years. In return, Millicom has granted its partner a put option for the same duration, exercisable in the event Millicom sells its interest in Tigo Guatemala or undergoes a change of control.
The agreement has no impact on Millicom's reported normalized net profit or on Millicom's overall exposure to Guatemala.
As a result, Millicom will fully consolidate the operation in Guatemala from January 1, 2014. Previously, the accounts of the Guatemala business were proportionately consolidated.