TIGO Shares Soar 1.33% on Uruguay Acquisition

Millicom International Cellular S.A. (TIGO) shares rose 1.33% intraday, reaching their highest level since September 2021, marking a 0.19% increase for the day and a 0.57% gain over the past two days.

The strategy of buying TIGO shares after they reached a recent high and holding for one week yielded strong results over the past five years. The strategy achieved an overall return of 80.20%, surpassing the benchmark return of 50.02% by 30.18%. Although the strategy had a maximum drawdown of -26.66% and a Sharpe ratio of 0.90, it maintained a relatively high Sharpe ratio, indicating good risk-adjusted returns.

Millicom International Cellular S.A. (TIGO) has announced the acquisition of Telefónica's operations in Uruguay for USD 440 million. This strategic move aims to expand Millicom's presence in South America and is expected to yield financial benefits starting in 2026 due to anticipated synergies and operational efficiencies. The acquisition is likely to enhance Millicom's scale and strengthen its Latin American platform, leveraging Uruguay's stable market environment.

In addition to the acquisition, Millicom's recent Annual and Extraordinary General Meetings approved several strategic resolutions. These include director elections, dividend distributions, and a share repurchase plan, all of which could positively impact the company's stock performance. The share repurchase plan, in particular, is seen as a bullish signal, indicating the company's confidence in its future prospects and its commitment to returning value to shareholders.