Millicom and EPM Agree on $520mln Deal to Advance Tigo-UNE and ColTel Merger Plans

Millicom (Tigo) has entered a strategic agreement with Empresas Públicas de Medellín (EPM) to advance its merger plans in Colombia. The deal involves a USD $520 million offer for EPM's stake in Tigo-UNE. EPM has consented to a future merger between Tigo-UNE and Colombia Telecomunicaciones if the sale process is unsuccessful. Millicom will re-include Tigo-UNE in its Restricted Group, securing a clear governance structure and positioning itself for operational synergies in the telecom sector.

Luxembourg, July 02, 2025 – Millicom (Tigo) has announced a strategic agreement with Empresas Públicas de Medellín (EPM) that advances its merger plans in Colombia. The agreement involves a USD $520 million offer for EPM's stake in Tigo-UNE, subject to the terms published by EPM on July 1, 2025 [1]. This offer represents a significant step in Millicom's acquisition strategy in Colombia and paves the way for the integration of Tigo-UNE and Colombia Telecomunicaciones (ColTel).

Under the terms of the agreement, Millicom has committed to present an offer in EPM's Law 226 sale process. The minimum price set by EPM is COP$418,741 per share of Tigo-UNE, equating to a total consideration of approximately USD $520 million. The agreement includes customary legal protections, and EPM has secured an extension of its existing exit rights if the Law 226 sale process does not succeed due to external factors.

Should EPM remain a shareholder of Tigo-UNE due to an unsuccessful Law 226 sale process, EPM has agreed to provide consent for the proposed future merger between Tigo-UNE and ColTel, subject to certain closing conditions. As part of the transaction, Millicom will re-include Tigo-UNE in Millicom's Restricted Group, reflecting the company's renewed strategic commitment to the market.

Marcelo Benitez, CEO of Millicom, commented, "This agreement marks an important milestone for Millicom’s strategy in Colombia. We are moving decisively with our integration plans while reaffirming our commitment to long-term investment in Colombia’s digital ecosystem and infrastructure" [1].

The agreement signifies a strategic move by Millicom to solidify its position in the Colombian telecom market. By securing EPM's consent for a future merger, Millicom ensures a clear governance structure and positions itself for operational synergies in the telecom sector. This deal is expected to enhance Millicom's market share and operational efficiency in Colombia, a key market for the company.

For further information, please contact:
Press: Investors:
Sofia Corral, Director Corporate Communications
press@millicom.com
investors@millicom.com

References:
[1] https://www.globenewswire.com/news-release/2025/08/14/3133946/0/en/Millicom-Tigo-Reaches-Strategic-Agreement-with-EPM-to-facilitate-Merger-Process-with-ColTel.html