{"id":935619,"date":"2026-02-10T10:00:02","date_gmt":"2026-02-10T15:00:02","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/millicom-tigo-acquires-telefonica-operations-in-chile-jointly-with-njj-structured-to-capture-strategic-value-while-protecting-its-balance-sheet\/"},"modified":"2026-02-10T10:00:02","modified_gmt":"2026-02-10T15:00:02","slug":"millicom-tigo-acquires-telefonica-operations-in-chile-jointly-with-njj-structured-to-capture-strategic-value-while-protecting-its-balance-sheet","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/millicom-tigo-acquires-telefonica-operations-in-chile-jointly-with-njj-structured-to-capture-strategic-value-while-protecting-its-balance-sheet\/","title":{"rendered":"Millicom (Tigo) acquires Telefonica operations in Chile jointly with NJJ, structured to capture strategic value while protecting its balance sheet"},"content":{"rendered":"
\n

\n Millicom (Tigo) acquires Telefonica operations in Chile jointly with NJJ, structured to <\/b>
\n capture strategic value while protecting its balance sheet <\/b>\n <\/p>\n

\n Key Highlights:<\/b>\n <\/p>\n

Joint acquisition through a 49%\/51% partnership between Millicom International Cellular S.A. (\u201cMillicom\u201d) and NJJ.<\/p>\n

Transaction structured with an initial closing payment of $50 million and additional earn-out consideration up to $150 million based on structural value creation and not guaranteed by Millicom.
Acquired business will not be consolidated in Millicom\u2019s financial statements during joint
ownership, and financial obligations of the acquired company and the transaction are non-recourse to Millicom. Telefonica will be required to assure CLP 79 billion (approximately USD 92 million) at closing for balance sheet stability.
Millicom will have the option to acquire NJJ\u2019s stake in the business in Year 5 and 6 post-closing at a 10% discount to Millicom trading multiples, with NJJ having a later option to acquire Millicom\u2019s stake with the same price methodology if Millicom does not exercise.
Acquisition reinforces Millicom\u2019s strategic presence in South America and complements its regional footprint.<\/p>\n

\n Luxembourg, <\/b>
\n February<\/b>
\n 10, 2026. <\/b>\u00a0NJJ and Millicom International Cellular S.A. (\u201cMillicom\u201d) today announced the acquisition from Telefonica S.A. (\u201cTelefonica\u201d) of 100% of Telefonica\u2019s interest in its Chilean business (representing 99.4% of the company), through a jointly controlled vehicle owned 51% by NJJ and 49% by Millicom.<\/p>\n

Telefonica will receive an initial closing payment of $50 million and be entitled to additional earn-out consideration up to $150 million based on structural value creation. The earn-out consideration and any obligations of the acquired business, including its existing debt, will be payable from its cash flows and are not guaranteed by Millicom.<\/p>\n

In connection with the joint acquisition, NJJ and Millicom are entering into a shareholders\u2019 agreement pursuant to which Millicom will have a call option to purchase NJJ\u2019s share in the acquired\u00a0 business after the fifth and sixth years post-closing, at a valuation based on Millicom\u2019s then-prevailing trading multiples less a 10% discount, payable with Millicom shares. If exercised, NJJ will be entitled to receive cash or Millicom shares for its transferred stake. If Millicom does not exercise its option, NJJ will have a call option to acquire Millicom\u2019s 49% stake on similar pricing terms.<\/p>\n

This structure enables Millicom to capture long\u2011term of a strategically expanded presence in South America while maintaining a healthy balance sheet and preserving financial flexibility.<\/p>\n

At the closing, Telefonica will be required contribute CLP 79 billion (approximately USD 92 million) which will be allocated to satisfy certain payments and to ensure balance sheet stability.<\/p>\n

\n Strategic Rationale<\/b>\n <\/p>\n

Although Millicom will initially hold a minority stake, the company will operate the business from day one and will apply the Millicom operational playbook to stabilize and strengthen the asset, drawing on its extensive regional experience.<\/p>\n

As partners, NJJ and Millicom aim to enhance competitiveness and operational efficiency, capitalize on network modernization and service innovation, and support sustained investment in network quality and digital services in Chile. The transaction provides a distinctive opportunity to acquire and reposition a challenged asset in one of the region\u2019s largest and most strategic markets at an attractive valuation, while preserving the strength and flexibility of Millicom\u2019s balance sheet.<\/p>\n

The joint acquisition reflects Millicom\u2019s disciplined capital allocation strategy, prioritizing long-term value creation, operational improvement, and strong alignment with local market fundamentals.<\/p>\n

\n Marcelo Benitez, CEO of Millicom,<\/b> commented: \u201cThis transaction reflects Millicom\u2019s disciplined and pragmatic approach to long-term value creation in Latin America. Partnering with NJJ allows us to combine complementary strengths while preserving financial discipline, balance-sheet protection, and strategic flexibility<\/i>. We are taking an option on a large and important market through a thoughtful structure that limits upfront risk, isolates leverage, and fully protects Millicom from recourse. It gives NJJ and Millicom operational control from day one and the ability to capture long-term upside at an attractive valuation, without compromising our financial strength.<\/i>Chile is a strategic market with solid fundamentals and strong demand for high-quality connectivity. We are committed to applying our operational playbook, investing with discipline, and supporting Chile\u2019s digital development through better networks, better execution, and sustainable value creation over time.\u201d<\/i><\/p>\n

\n Country Profile: Chile<\/b>\n <\/p>\n