Millicom International Cellular S.A. (“Millicom”) announces that it has signed agreements for the sale of its operations in Tanzania and for its stake in the AirtelTigo joint venture in Ghana. Once closed, the transactions will complete Millicom’s multi-year plan to divest its African operations and focus on its Latin America markets.
In Tanzania, Millicom has agreed to sell its entire operations to a consortium led by Axian, a pan-African group that was part of the consortium that acquired Millicom’s operations in Senegal in 2018.
In Ghana, Millicom along with its joint venture partner, Bharti Airtel Limited, have signed a definitive agreement for the transfer of AirtelTigo to the Government of Ghana. Millicom will take a $25 million charge as a result of this agreement.
Millicom CEO, Mauricio Ramos, commented, “Today 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. With the announcement that we are divesting our remaining African businesses, we close a chapter in our history and open another solely focused on the Latin American region.”
Axian CEO, Hassanein Hiridjee stated, “Thanks to this agreement with Millicom, Axian is starting a new chapter in Tanzania and in Zanzibar for the long term. We are convinced that the Axian model will accelerate the digital inclusion and open access to innovative services for the clients while supporting economic growth. We are very excited by this new challenge.”
Financial details were not disclosed, and completion of each transaction is subject to customary closing conditions, including regulatory approvals.