Luxembourg-headquartered Millicom, the proprietor of Tigo-branded telecom companies throughout Latin America, has introduced that its subsidiary, Tigo Colombia, has agreed to promote roughly 1,100 wi-fi communications towers to the International Infrastructure Buyers IV fund of the US funding agency KKR. KKR plans to work in partnership with NEXO LatAm, a digital infrastructure platform that can help in implementing KKR’s infrastructure technique all through Latin America.
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Lengthy-term Lease Association
As a part of the transaction, Tigo Colombia and KKR have entered right into a long-term settlement whereby KKR will lease wi-fi communications towers to Tigo Colombia to help its wi-fi networks. In accordance with Tigo, the precise variety of towers can be decided post-closing, topic to customary closing circumstances.
Millicom mentioned, “This transaction with KKR is one other step in direction of crystallising the worth of our tower websites throughout Latin America, simplifying our enterprise, and permitting us to concentrate on servicing our clients. This transaction enhances our operational and capital effectivity in Colombia, with long-term lease obligations denominated in Colombian pesos, per our goal of accelerating our proportion of financing in native forex.”
Strategic Focus and Advantages
KKR’s Infrastructure group commented, “KKR seeks to develop the telecommunications business in Latin America by way of best-in-class mission-critical belongings corresponding to fibre, towers, and small cells. This acquisition, together with KKR’s fibre investments in Chile, Colombia, and Peru, underscores KKR’s dedication to its digital infrastructure platform in LatAm. This essential settlement with Tigo is according to our technique of long-term partnerships with main firms within the area.”
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Millicom – Tigo
Millicom is a supplier of fastened and cellular telecommunications companies in Latin America below the Tigo model. As of September 30, 2023, Millicom supplied cellular and fibre-cable companies to over 45 million clients, with a fibre-cable footprint of over 13 million homes-passed.
