Page 102 - SAMENA Trends - November-December 2021

REGULATORY & POLICY UPDATES SAMENA TRENDS

Millicom Takes Full Control of Tigo Guatemala For $2.2B

Millicom agreed to take full control of it plans to refinance by debt and an equity of its society”. The transaction appears
Tigo Guatemala by buying out a 45 per rights offering in Q1 2022. The operator to be the biggest non-domestic direct
cent stake from its JV partner for $2.2 believes the deal will boost its free cash investment in Guatemala since at least
billion, reinforcing its focus on Central flow to equity by approximately $200 1970, the Financial Times reported, citing
and Latin America in a deal tipped to be million in 2021. Millicom chief Mauricio data from the World Bank. Millicom has
the highest non-domestic investment Ramos commented the deal will help the been on the lookout for ways to boost its
in the country in more than 50 years. company transform its financial profile by presence in Central and Latin America for
In a statement, the operator explained increasing its cash flow and net income, years, including through a deal it scored in
it expected the transaction, which was and “greatly simplify our structure.” 2019 to take over Telefonica’s operations
sealed with local partner Miffin Associates, Ramos highlighted Tigo Guatemala as one in Panama, Costa Rica and Nicaragua.
to be finalized today (12 November) and of its “most successful businesses”, and It also eyed concentrating on the region
to help it consolidate its position as a explained the investment into the operation by exiting the African continent in April
leader in Central America. Millicom has reflected its confidence in “the thriving and committed $135 million in July into
secured bridge financing from a group of economy of Guatemala and our renewed network improvements in its Honduras,
international banks to fund the deal, which commitment to the digital transformation Paraguay and Bolivia operations.

MTN Nigeria Receives Approval for Public Sale Offer

MTN Group has announced that Nigeria’s Securities and Exchange
Commission (SEC) has approved an offer for the sale of up to 575
million ordinary shares in MTN Nigeria, by way of a bookbuild
to qualified investors (‘institutional offer’) and a fixed price to
retail investors (‘retail offer’). The institutional offer opens on 23
November and closes on 26 November, after which a fixed price will
be determined for the retail offer. An announcement on the retail
offer will be published once clearance is obtained from the SEC.
‘MTN Group is pleased with the launch of this public offer. This is
the first step in a series of offers over the near to medium-term
for MTN Group to sell-down a total of up to 14% shareholding in
MTN Nigeria. This should result in greater ownership by Nigerian
institutional and retail shareholders, and increased liquidity of the
share on the Nigerian Stock Exchange,’ said Group President and
CEO Ralph Mupita.

US C-Band Tension Escalates

The US Federal Aviation Administration be impacted if pilots do not use cockpit in 46 US markets on 6 December. The US
(FAA) reportedly prepared to issue a systems relying on the altitude equipment. aviation industry expressed concern before
warning stating 5G transmissions in the Radar altimeters use spectrum in the the C-Band auction. Early last month, FAA
C-Band may interfere with flight safety, 4.2GHz to 4.4GHz band. In the US, mobile deputy administrator Bradley Mims wrote
projecting flight delays and cancellations operators are expected to use C-Band about “deep concern” regarding potential
could result from operators’ upcoming n77 spanning 3.3GHz to 4.2GHz, with the interference, Reuters reported adding the
launches. A report by The Wall Street Federal Communications Commission FCC argued its track record demonstrated
Journal revealed the FAA is drafting (FCC) allocating blocks in the 3.7GHz a continuing commitment to aviation
guidance to explain how 5G in the C-Band to 3.98GHz following an auction earlier safety. Outside the US, several operators
spectrum may impact the performance this year. Satellite companies are in the operate C-Band 5G networks.
of radar altimeters on aircraft. The process of clearing the spectrum for mobile
agency projected airline schedules will operators, with 5G services set to begin

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