Colombia calls for Tigo rescue

Colombia calls for Tigo rescue

Colombia’s Ministry of ICT MinTic revealed it held a crisis meeting to manage Tigo Colombia’s financial woes in a bid to prevent the operator from ceasing mobile service. 

In a statement, MinTic said the meeting we attended by representatives from Tigo, and shareholders of the operator: Empresas Publicas de Medellin (EPM) and Millicom International Cellular, and the Superintendence of Industry and Commerce.

The meeting produced two solutions: recapitalisation or stake dilution for EPM. Through recapitalising the Tigo will require an investment of US$150 million, and both parties chipping in US$75 million each.

However, if EPM cannot make the contribution, Millicom will pay the total of US$150 million and reduce EPM’s stake in the operator, currently, EPM owns 51% and Millicom controls 49%. A final decision is expected on October 9.

Minister of ICT Mauricio Lizcano commented: “The government’s will is to maintain the operation of the company, and thus preserve the connectivity of 12.5 million users and the employment of the 15,000 collaborators who work [for the company] directly and indirectly. Whatever decision is made, in no case should the service be stopped.”

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