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Millicom's Strategic Move: Delisting SDRs and Resuming Shareholder Remuneration

Wesley ParkFriday, Nov 29, 2024 9:03 am ET
3min read


Millicom International Cellular (Tigo), a leading telecommunications company operating in Latin America, has announced a significant strategic move. The company plans to consolidate its listing on the Nasdaq U.S. by delisting its Swedish Depositary Receipts (SDRs) from Nasdaq Stockholm. Additionally, Millicom is set to resume shareholder remuneration, beginning with an interim dividend of $1.00 per share, approximately $172 million. This article explores the potential implications of this move and the benefits and challenges it presents for Millicom shareholders.

The decision to delist SDRs from Nasdaq Stockholm and consolidate the listing on the Nasdaq U.S. is expected to enhance liquidity and attract new investors focused on Latin America. This strategic shift aligns with Millicom's goal to become a more efficient entity with a simplified corporate governance structure and a solidified position in the Latin American telecommunications market. By delisting the SDRs, Millicom aims to improve trading liquidity for shareholders, potentially include the company in certain equity indices, and reduce administrative costs associated with maintaining dual listings.



However, the consolidation process is not without its risks and challenges. The delisting process may lead to temporary stock price volatility and reduced liquidity as SDR holders convert their shares to U.S. shares. Additionally, the conversion process may be complex and costly for some SDR holders, potentially leading to delays or errors. The temporary reduction in Millicom's shareholder base and access to capital during the delisting process is another challenge the company will need to manage effectively.

TIGO Basic EPS, Basic EPS YoY


The resumption of shareholder remuneration is a significant step for Millicom, signaling a commitment to rewarding investors for their support. The interim dividend of $1.00 per share, representing approximately $172 million, highlights the company's confidence in its financial position and future prospects. This move is likely to be well-received by shareholders, particularly those who have been patiently awaiting a return on their investments.

In conclusion, Millicom's decision to consolidate its listing on the Nasdaq U.S. and resume shareholder remuneration is a strategic move aimed at enhancing liquidity, attracting new investors, and rewarding shareholders. While the delisting process presents some challenges, the long-term benefits for the company and its shareholders are expected to outweigh the temporary setbacks. As an investor, it is essential to monitor the progress of this consolidation process and reassess your investment strategy accordingly.
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highchillerdeluxe
11/29
$TIGO's liquidity might get a nice bump soon.
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ROMEO
11/29


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Touma_Kazusa
11/29
Delisting might shake things up, but I'm holding long
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CALAND951
11/29
Millicom's delisting might shake things up, but I'm holding long-term. Latin America's telecom market is a goldmine.
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No-Explanation7351
11/29
Millicom's move could boost $TIGO, bullish on Latin America
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bobbybobby911
11/29
Dual listings are a hassle, simplification is smart.
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auradragon1
11/29
Dividend's back, $TIGO showing love to patient shareholders. 🙌
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portrayaloflife
11/29
Millicom's divvy move could attract more bulls. 📈🤑
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moazzam0
11/29
$MIIC going for a single listing is like streamlining a sports car. Less complexity, more speed. 💨
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TailungFu
11/29
Dividend of $1/share is sweet. Millicom's showing they care about us little guys. Time to see if they can keep the momentum.
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ROMEO
11/29


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vulturetrades
11/29
Nasdaq U.S. listing could attract new, hungry investors.
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