A committee representing the board of Latin America-focused operator Millicom unanimously recommended shareholders reject Xavier Niel’s Atlas Investissement buyout offer of more than $4 billion.
It stated in a regulatory filing on July 15 that the offer of $24 per share significantly undervalued the operator group, which runs the Tigo brand, and it’s not in the best interest of shareholders.
It explained that Atlas Investissement’s bid did not take into account the group’s long-term growth plan and financial targets. The company detailed ambitions to generate equity free cash flow of $659 million, $701 million and $833 million in 2024, 2025 and 2026, respectively.
Millicom also added the bid was “well below trading multiples for comparable listed companies”.
Atlas Investissement relaunched its bid to acquire more shares in Millicom at the beginning of July. It currently has a 29% stake in Millicom.
