Millicom's Strategic Shift: Delisting SDRs and Consolidating on Nasdaq U.S.

Millicom International Cellular S.A. (TIGO), a leading provider of fixed and mobile telecommunications services in Latin America, has announced its intention to delist its Swedish Depositary Receipts (SDRs) from Nasdaq Stockholm and consolidate its listing on the Nasdaq U.S. This strategic move aims to simplify trading, attract new investors, and enhance shareholder value. Let's delve into the reasons behind this decision and its potential implications.



Why delist SDRs from Nasdaq Stockholm?

1. Improved liquidity: Consolidating the listing on a single exchange, the Nasdaq U.S., is expected to provide improved levels of liquidity to Millicom's shareholders, making it easier for them to buy and sell shares.
2. Access to capital: A U.S. listing can provide Millicom with better access to capital, reaching a larger pool of potential investors.
3. Attracting new investors: Consolidating the listing on the Nasdaq U.S. can attract new investors focused on Latin America, where most of Millicom's peers are US-listed.
4. Potential inclusion on equity indices: A U.S. listing may lead to inclusion in certain equity indices, further increasing visibility and attracting more investors.
5. Simplified corporate governance: A single listing can simplify Millicom's corporate governance structure and reduce administrative costs.

Timeline for the delisting process

Millicom anticipates submitting the delisting application with Nasdaq Stockholm on March 3, 2025. Upon approval, which is expected within a few days, the last day of trading for SDRs is estimated to be on or around March 17, 2025.

Potential impacts on European investors

The delisting of SDRs from Nasdaq Stockholm will affect the liquidity and accessibility of Millicom's shares for European investors. To mitigate these potential impacts, Millicom has taken measures such as providing clear instructions for conversion, offering fee waivers or discounts, and maintaining communication with investors. Additionally, the potential inclusion on certain equity indices could increase the visibility and accessibility of Millicom's shares for European investors.

Conclusion

Millicom's strategic decision to delist its SDRs from Nasdaq Stockholm and consolidate its listing on the Nasdaq U.S. is a well-thought-out move that aims to enhance shareholder value, improve liquidity, and attract new investors. By simplifying its corporate governance structure and reducing administrative costs, Millicom is positioning itself for future growth and success. As an investor, it's essential to stay informed about such strategic shifts and consider the potential impacts on your portfolio.