Millicom (Tigo) Raises Target For 2022-2024 Period To "Around $600M", From "At Least $500M" Previously And Launches Share Repurchase Program Of Up To 2M Swedish Depository Receipts Representing Ordinary Shares

Author: Benzinga Newsdesk | December 14, 2023 05:22pm

Millicom (Tigo) raises target and launches share repurchase program  

 

Luxembourg, December 14, 2023 – Millicom announced today changes to its financial target and the launch of a new share repurchase program to fund employee share plans.

Raised target

Millicom is raising its target of cumulative Equity Free Cash Flow (EFCF1) for the 2022-2024 period to "around $600 million", from "at least $500 million" previously. The more ambitious target reflects higher expected savings from Project Everest, the company's efficiency program, as well as capex, spectrum and cost savings expected to be derived from the proposed creation of a shared mobile network in Colombia, and other important initiatives already identified as part of the company's budget planning for 2024.

Management continues to expect that 2024 should be the strongest of the three years in terms of EFCF generation, whereas 2023 will be impacted by higher than usual spectrum payments and approximately $90 million of severance charges, among other one-offs. The company expects to provide additional details about the 2024 outlook when it reports Q4 2023 results.   

Share repurchase program

On May 31, 2023, the Annual General Meeting of Shareholders ("AGM") of Millicom resolved to authorize (the "Authorization") the Board of Directors of Millicom (the "Board") to adopt a share repurchase plan. Based on the Authorization, the Board decided today to initiate a repurchase program of up to 2,000,000 Swedish Depository Receipts ("SDRs") representing the Company's ordinary shares. The primary purpose of the share repurchase plan is to meet obligations under Millicom's share-based incentive plans or other compensation programs.

The repurchase program will be implemented in accordance with the Authorization, the Nasdaq Nordic Main Market Rulebook for Issuers of Shares ("Nasdaq Rulebook"), and applicable law including the Luxembourg law of 10 August 1915 on commercial companies, as amended, and the EU Market Abuse Regulation No. 596/2014 ("MAR"), and it will be executed consistently with the provisions of Article 5 of MAR and the Commission Delegated Regulation No. 2016/1052 ("Safe Harbor Regulation"). The repurchase program will be managed by a brokerage firm which makes its trading decisions concerning the timing and quantity of the purchases of SDRs independently of Millicom based on the framework agreed at inception. The repurchase program will be conducted under the following conditions:

• Repurchases may take place during the period between December 18, 2023 and May 22, 2024, the date of Millicom's 2024 AGM.
• The maximum level of SDRs that may be repurchased will be the lower of SEK 420 million (approximately USD 40 million) in aggregate purchase price, or 2,000,000 SDRs.
• Payment for the shares will be made in cash.
• SDRs may be repurchased on Nasdaq Stockholm at a price per share within the registered interval for the share price prevailing at any time (the spread), that is, the interval between the highest buying price and the lowest selling price.

As of the date of this press release, the total number of outstanding shares in Millicom is 172,096,305 of which 292,609 are held by Millicom as treasury shares. Completed acquisitions of own shares will be disclosed and reported in accordance with applicable laws and regulations as well as Nasdaq Rulebook.

Complete information on the authorization resolved by the Annual General Meeting can be found on Millicom's website

Posted In: TIGO