16 October 2009
(Posted by CAAI News Media)
Millicom has completed withdrawal from Asia by selling its Sri Lankan operation, only weeks after agreeing separate sales of businesses in Cambodia and Laos. Etisalat has bought its Sri Lanka business for $155 million cash.
With the move, Millicom’s Tigo brand will be restricted to a few operations in Latin America and Africa, where there are “significant long-term growth opportunities”, according to CEO Mikael Grahne.
Millicom was one of the pioneers of mobile communications — it originally held 15% of the partnership that became Vodafone — but has been withdrawing from the global market for some time.
In August 2009 the company agreed to sell its 58.4% interests in a Cambodian operator to its Cambodian partner for a price close to $350 million. A month later Russia’s VimpelCom agreed to spend $65 million on a 74.1% holding in its Laos operator.
The moves follow a review in July by banker Goldman Sachs of Millicom’s Asian operations. As a result of the review, all Millicom’s Asian interests were classified as assets held for sale.
The Sri Lankan sale “represents the final element of our recent divestment programme”, said Grahne. The sale is “not subject to any conditions”, said Millicom, and is expected to close by October 20.
The company still has six operations in Latin America and seven in Africa, all using the Tigo brand. GTB
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