In a decision that will mark its complete exit from the African continent, Millicom International Cellular (Tigo) has agreed to the sale of its stakes in the AirtelTigo joint venture in Ghana and its operations in Tanzania.
The telco said on Monday that the successful conclusion of the two transactions will fetch Millicom $25 million and complete its multi-year plan to divest its African operations and focus on its Latin American markets.
Millicom has agreed to sell its total operations in Tanzania to a Pan-African group led by Axian. It was part of the consortium that acquired Millicom’s operations in Senegal in 2018.
Also in Ghana, Millicom along with its joint venture partner Bharti Airtel Limited signed a definitive agreement for the transfer of AirtelTigo to the Government of Ghana.
Mauricio Ramos, the chief executive of Millicom said “Today Tigo is a leading provider of broadband services to consumers, businesses and governments in Latin America, where penetration and data speeds remain low by the standards of more mature markets”
“Through our investment-led strategy, we are bringing reliable high-speed mobile and fixed broadband to the communities we serve in the region. With today’s announcement that we are divesting our remaining African businesses, we close a chapter in our history and open another solely focused on the Latin American region.”
Founded in 1990, Millicom provides cable and mobile services dedicated to emerging markets in Latin America and Africa, trading through the brand name Tigo.
With over 13 million subscribers as at end of December 2020, Tigo is Tanzania’s second-largest telecommunications operator after Vodacom.