Millicom International Cellular S.A. stated that it has completed the transaction announced on April 19, 2021 for the sale of its operation in Tanzania to a consortium led by Axian, a pan-African group. In accordance with the terms of the sale, Axian has assumed ownership of the business, including its debt and other obligations, and Millicom has received net cash consideration of approximately $100 million. The transaction completes Millicom’s multi-year plan to divest its African operations and associated obligations and liabilities and to focus on its Latin America markets.
“Tigo is a leading provider of broadband services to consumers, businesses and governments in Latin America, where penetration and data speeds remain low by the standards of more mature markets. Through our investment-led strategy, we are bringing reliable high-speed mobile and fixed broadband to the communities we serve in the region. We have completed the divestiture of our African businesses, we close a chapter in our history and open another solely focused on the Latin American region,” said Mauricio Ramos, president and CEO of Millicom.
As part of Millicom's multi-year plan, the company will divest its African operations as well as its related obligations and liabilities and focus on Latin American markets. The company completed the divestment of AirtelTigo, its joint venture with Bharti Airtel in Ghana in 2021, and had operations in Chad, the Democratic Republic of Congo, Mauritius, Rwanda and Senegal, but sold them all.
With the acquisition of Tigo Tanzania, Axian will expand into a new telecom market where it already has big plans. Over the next five years, the consortium plans to invest USD 500 million in the Tanzanian telecom market. The investment will target telecom infrastructure and is expected to help expand the newly acquired company's network footprint in the country, particularly in the 4G segment.