Millicom says 'Ola' to Columbia

James Middleton

September 1, 2006

1 Min Read
Millicom says 'Ola' to Columbia

Luxembourg-based Millicom International Cellular (MIC) has emerged as the winner of a controlling stake in third placed Columbian operator, Columbia Movil, which operates under the Ola brand.

Millicom has acquired a 50 per cent plus 1 share controlling stake in the Columbian operator for a consideration of $125m. Including this initial equity contribution, Millicom expects to invest a total of approximately $200m in Colombia Movil within the next three years.

Ola has an estimated 9 per cent mobile market share in a country of over 43 million people.

Ola’s founding shareholders, Empresa de Telecomunicaciones de Bogota and EPM Telecomunicaciones, will retain an interest of 50 per cent minus 1 share minority stake. Millicom will appoint four out of the seven board members and will have day-to-day management control of the business.

Marc Beuls, president and CEO of MIC, said: “The purchase of Colombia Movil doubles Millicom’s population under license in our highly successful Latin American region.we would expect the business to start contributing to Millicom’s EBITDA during 2007.”

About the Author(s)

James Middleton

James Middleton is managing editor of | Follow him @telecomsjames

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