Millicom International Cellular S.A.OTCPK - Current
Fri, May 27, 11:00 AM
- Orange (ORAN -1.3%) is said to be talking informally with Millicom International Cellular (OTCPK:MIICF +3.5%) in order to buy still more African operations.
- Orange -- which has been pouring money into African expansion -- is interested in Senegal, Ghana and Chad, Bloomberg says, as well as East Africa after it sold out of its Kenyan operation.
- Millicom had previously agreed to sell its assets in Democratic Republic of Congo to Orange for $160M. It's looking to get out of West and Central Africa and focus on its eastern holdings. “The market clearly wants an exit from Africa for Millicom,” analyst Stefan Gauffin says.
Oct. 26, 2015, 4:26 PM
- Millicom International Cellular (OTCPK:MIICF +1%) has wrapped up an acquisition of Zantel, making it the No. 2 mobile operator in Tanzania.
- Terms were undisclosed, though in June Millicom had said it would pay a token $1 and assume the company's $74M in debt. The government of Zanzibar is keeping a 15% stake in Zantel.
- Zantel is Zanzibar's biggest mobile operator and had a 4.8% share of the Tanzania market, which has 34.1M subscribers. Adding it brings Millicom's Tigo unit to 34.2% of the market, ahead of Airtel's 30.1% and just behind Vodacom's (OTC:VODAF) 35.2%.
Jul. 8, 2015, 11:58 PM
- Europe is leading the world in telecoms moving to "quad-play" bundling -- adding wireless to fixed-line telephones, broadband and pay TV -- which should mean a big opportunity for firms to drive margin improvement and build some competitive moats, says Morningstar's Allan Nichols.
- Both in-country consolidations and convergence mergers are helping build moats, he says -- the latter because it tends to lower churn as people subscribe to more services. And with lower churn, companies can lower subscriber acquisition cost.
- His favorites in the space: Telefonica (NYSE:TEF), already a leader in triple-play and convergence in Spain and Brazil; Orange (NYSE:ORAN), leading a fiber buildout in France; and Millicom International Cellular (OTCPK:MIICF), with a high organic growth rate but low EV/EBITDA.
- About 16% of Virgin Media customers were taking four services when it was acquired by Liberty Global (NASDAQ:LBTYA) in summer 2013, which Nichols thinks was a key factor. Liberty is now offering wireless services as an MVNO in several markets, and has agreed to buy Royal KPN's (OTCPK:KKPNY) wireless business Base.
- From the wireless direction, Vodafone (NASDAQ:VOD) is also acquiring assets to offer other services, particularly after it bought Cable & Wireless Worldwide in the UK, and later Kabel Deutschland in Germany.
- Europe would benefit from more cross-border mergers, Nichols says, but they're unlikely due to political constraints, and German cable consolidation is likely to run into regulatory opposition as well.