Millicom's Strategic Moves: Interim Dividend and SDR Delisting

Millicom International Cellular S.A. (Millicom), the Luxembourg-based telecommunications company, has recently announced updates on its interim dividend and intended delisting of Swedish Depositary Receipts (SDRs) from Nasdaq Stockholm. These strategic moves aim to simplify share trading, enhance liquidity, and resume shareholder remuneration, supported by the company's strong financial performance in 2024 and positive outlook for 2025 and beyond.

Interim Dividend and Payment Details

Millicom's Board of Directors has approved an interim dividend of $1.00 per share (or its equivalent in SEK per SDR), totaling approximately $172 million, expected to be paid on or around January 10, 2025. The record date for the dividend is January 3, 2025, with the ex-dividend date set for January 2, 2025, for SDRs, and January 3, 2025, for Millicom U.S. Shares. Holders of Millicom U.S. Shares registered with Broadridge will receive their dividend in USD, while SDR holders will receive their payment in SEK, with Millicom arranging for the conversion at the official SEK to USD exchange rate published by the Riksbank on January 3, 2025.



SDR Delisting and Conversion Process

Millicom plans to delist its SDRs from Nasdaq Stockholm by the end of February 2025, aiming to consolidate its listing onto the Nasdaq Stock Market in the United States. This move is expected to provide improved liquidity, appropriate access to capital, and potential inclusion on certain equity indices. To facilitate the conversion process, Millicom will cover conversion fees charged by SEB and Broadridge during the transition period, processing conversions in eight weekly tranches starting January 20, 2025.

SDR holders must convert their SDRs into Millicom U.S. Shares prior to the delisting date to remain shareholders. To do so, SDR holders must have an account eligible to hold U.S. shares. If SDRs are nominee registered, the bank/broker will guide the holder on the necessary actions. Directly registered SDR-holders must open a custody account, an investment savings account, or an endowment insurance, and transfer their SDRs to such an account to complete the conversion. SDR holders who wish to receive the payment of the interim dividend in USD must submit valid and complete conversion instructions to Skandinaviska Enskilda Banken AB (SEB) by December 20, 2024, at 3:00 pm CET.



Impact on European Investors and Alternatives

The delisting of SDRs from Nasdaq Stockholm may initially reduce trading volume and liquidity for European investors, as they will need to convert their SDRs to Millicom U.S. Shares to continue investing. However, this could be offset by increased interest from U.S. investors, attracted by the simplified governance structure and potential inclusion in U.S. equity indices. Additionally, Millicom's commitment to covering conversion fees during the transition period may ease the process for SDR holders.

Post-delisting, European investors may consider trading Millicom shares on the Nasdaq U.S. or other international exchanges like the London Stock Exchange (LSE) or the Frankfurt Stock Exchange (FSE). These exchanges offer improved liquidity and access to a larger pool of potential shareholders.

In conclusion, Millicom's strategic moves to consolidate its listing on the Nasdaq U.S. and resume shareholder remuneration through an interim dividend demonstrate the company's commitment to enhancing shareholder value and maintaining a strong financial position. By facilitating the conversion process and covering related fees, Millicom aims to minimize disruption for SDR holders and maximize the benefits of these strategic changes.