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Jim Bondoux

Millicom Buying Majority Shareholding in CableOnda

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Here's Millicom's press release:

http://mb.cision.com/Main/950/2636808/922133.pdf

Millicom has evolved from an early cell phone service provider to a multinational mobile telecommunications giant with a large internet footprint in both African and Latin American countries. The company has grown by consolidating various acquisitions and taking on lots of debt. Goldman Sachs advised in its purchase of 80% of CableOnda.

I've generally been quite pleased with CableOnda's service, and I am not at all sure that this transaction will have positive consequences for the average household customer. I have no choice but to wait and see.

 

 

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Millicom to acquire Panama's Cable Onda for US$1 billion

Luxembourg-based Millicom agreed to acquire a controlling 80% stake in Cable Onda, the largest cable and fixed telecommunications services provider in Panama, for approximately US$1.002 billion in cash. The deal values 100% of Cable Onda at an enterprise value of $1,460 million.

Cable Onda is the leader in Panama’s broadband internet, pay-TV, fixed telephony and B2B telecommunications markets, serving more than 500,000 customers using mostly its state-ofthe-art Hybrid Fibre-Cable (HFC) network. For the half-year ended June 30, 2018, Cable Onda generated revenue of $195 million and EBITDA of $83 million, for a margin of 42.4%. Capex for the period was $46 million.

As of December 31, 2017, Millicom provided mobile services to approximately 51 million customers, with a cable footprint of more than 9 million homes passed. In 2017, Millicom reported revenues of $6.0 billion and EBITDA of $2.2 billion. In Latin America, Millicom is present in Bolivia, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Paraguay.

Mauricio Ramos, CEO of Millicom said: “Our acquisition of Cable Onda is consistent with our strategy of accelerating the deployment of high-speed data networks in Central and South America. With the addition of Panama, we now have contiguous country operations from Guatemala to Colombia, which will significantly enhance our B2B capabilities, given the country’s increasingly important role as a business hub for the region. We are excited about expanding to Panama, an investment grade country with a diversified, dollarized, and robust economy. Disposable income levels in Panama are now among the highest in Latin America, yet penetration rates for digital services remain comparatively low. We look forward to working with our strong local partners to extend the company’s market leadership and bring Digital Lifestyle services to even more Panamanians and contribute to the ongoing socio-economic development of the country.”

 

https://www.convergedigest.com/2018/10/millicom-to-acquire-panamas-cable-onda.html

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Millicom buys majority stake of Panamanian Cable Onda for $ 1.46 billion

Mon, 10/08/2018 - 14:51

million_0.jpg

Millicom International Cellular SA, whose main brand is Tigo, bought for $ 1.60 billion the 80 percent shareholding of the company Cable Onda, the largest provider of pay television and fixed telecommunications services in Panama.

Cable Onda reported today that the commercial agreement includes its Telecarrier and Fronteras Security companies, that the negotiation is subject "to the conditions of closure and the consensus of Cable Onda's bondholders," and that it is expected to be concluded "by the end of 2018".

Millicom is a provider of cable and mobile services dedicated to emerging markets in Latin America and Africa, and in 2017 it reported revenues of $ 6 billion, according to data released by Cable Onda.

The Panamanian company said Sunday in a public statement that the trade agreement "will offer new opportunities for growth and development" for workers of "both companies, and innovation in products and services for the benefit of customers".

It also "constitutes a new foreign investment for Panama, which will bring socioeconomic development for the country and the sector," said Cable Onda, which retains the 20 percent shareholding in the company.

According to data released on Sunday officially, Cable Onda is the largest provider of pay television and fixed telecommunications services in Panama, and as of December 31, 2017 served 433,000 residential customers and 34,000 commercial and government customers.

For the year ended December 31, 2017, Cable Onda reported revenues of $ 374 million, earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 160 million, tax expenditures of $ 20 million, and invested $ 85 million in capital expenditures.

The general manager of Cable Onda, Nicolás González, affirmed that the company is "pleased to be a member of Millicom" which is "clear leader in most of the markets it serves".

"We achieved a wide complementarity that adds the background and knowledge of the local market of Cable Onda, with the international experience offered by a group such as Millicom," added the general manager.

The CEO of Millicom, Mauricio Ramos, said that the vision of the company "is to work with our strong local partners and with all the employees of Cable Onda, to extend the leadership of the company in the market and continue to provide and expand the portfolio of digital services to many Panamanians".

"The result of this agreement will make a more solid and competitive organization and deepen investment in technology, to reaffirm the leadership in the market segments to which Cable Onda directs its products and services," the Panamanian company added in its public statement.

Millicom is a leading provider of cable and mobile services dedicated to emerging markets in Latin America and Africa, and its main brand is Tigo, according to official information.

As of December 31, 2017, Millicom employed more than 19,000 people and provided mobile services to approximately 51 million customers, with a coaxial fiber optic network covering more than nine million households.

Founded in 1992, Millicom International Cellular S.A is headquartered in Luxembourg and is listed on Nasdaq Stockholm under the symbol MIC_SDB. Millicom has announced plans to also list its shares in the United States in 2019, added the official information.

 

https://www.panamatoday.com/economy/millicom-buys-majority-stake-panamanian-cable-onda-146-billion-8036

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Well, they have one less customer now.  Two weeks of no internet, several days waiting in for a tech that never showed after many, many promises.......enough.

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Cable Onda  sells 80% of stock to Millicom

cable-onda-620x264.jpg
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Cable Onda the largest provider of pay television and fixed telecommunications services in Panama,  has sold 80 percent of its shares to Millicom International Cellular S.A., whose main brand is Tigo, for $1.46 billion.  

The Panamanian company reported on Monday, October 8  that the commercial agreement includes its Telecarrier and Fronteras Security companies,  and that the deal is subject “to the conditions of closure and consensus of the Cable Onda bondholders “, and that it is expected to conclude “by the end of 2018”.

Millicom is a provider of cable and mobile services dedicated to emerging markets in Latin America and Africa, and in 2017 it reported revenues of $6 billion according to data distributed by Cable Onda.

The Panama company said in a public statement that the trade agreement “will offer new opportunities for growth and development “for workers of “both companies, and innovation in products and services for the benefit of customers “.

It also “constitutes a new foreign investment for Panama, which will bring socio-economic development to the country and the sector, “said Cable Onda.

As of December 31, 2017, Cable Onda was serving 433,000 residential customers and 34,000 thousand commercial and governmental clients.

For the year ended December 31, 2017, the company reported income of $374 million Benefits before interest, taxes, depreciation, and amortization Nicolás González, general manager of Cable Onda, said the company is “excited to be a member of Millicom “which is”  a clear leader in most of the markets it serves. ”

The  linking  “combines  trajectory and knowledge of the local Cable Onda market, with the international experience offered by a group like Millicom, “

 

https://www.newsroompanama.com/business/panama-4/cable-onda-sells-80-of-stock-to-millicom

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29 minutes ago, JohnF13 said:

Well, they have one less customer now.  Two weeks of no internet, several days waiting in for a tech that never showed after many, many promises.......enough.

Curious who you selected for your new ISP. There aren't that many options here in this area.

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And thats the problem.  They seem to think that piss poor customer service is acceptable because of the lack of options.  I went with Planet.  More expensive but I expect better service.  Called them on a Monday afternoon, the new stuff was installed the next day. 

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No Cable Onda rate increase as new owner takes reins

Mauricio-Ramos-CEO-Millicom-Cortesia_LPRIMA20181008_0085_27-620x264.png 
 
Panama customers of  Cable Onda will not face a rate increase for their TV service following the acquisition of 80% of the company’s shares by Millicom, which operates the Tigo brand in the region. "The tariff will continue to decrease, but consumption will continue to grow," said Millicom CEO Mauricio Ramos, on Tuesday, October 9. The Cable Onda,  brand will stay in place for now according to Ramos, but customers would be consulted if they prefer it  to remain or if it is changed to  Tigo, the Millicom brand.
 

https://www.newsroompanama.com/news/panama/no-cable-onda-rate-increase-as-new-owner-takes-reins

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Moderator comment: Proofreading issue again. I believe the correct investment amount was $1.46 billion, not million.

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Panama: Cable Onda Changes Ownership

With a $1.460 million investment, Millicom International Celular completed the acquisition of 80% of the capital of Cable Onda, one of the country's telephone, Internet and cable TV operators.

Tuesday, October 9, 2018

Cable Onda announced in a press release that following an extensive conversation process, Cable Onda S.A. and Millicom International Cellular S.A. have established a strategic alliance in which Millicom assumes an important ownership of Cable Onda as well as the business management. The agreement includes Telecarrier and Fronteras Securtity.

Meanwhile, Nicolas Gonzalez, general manager of Cable Onda, said to Prensa.com that they are "... Excited to be Millicom's partners in this next phase of Cable Onda's history, because we have achieved a broad complement of the trajectory and knowledge of Cable Onda's local market, with the international experience offered by a group such as Millicom".

Mauricio Ramos, CEO of Millicom, explained that "... Our vision is to work together with our strong local partners and with all of Cable Onda's co-workers to extend the company's market leadership and continue to provide and expand the digital services portfolio to many more Panamanians, thus contributing to the country's socioeconomic development."

See Cable Onda press release.

 

https://www.centralamericadata.com/en/article/main/Panama_Cable_Onda_Changes_Ownership

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This acquisition is highlighted today in MF, the Tuesday Financial section of LaPrensa.

These graphs contrast the size of the entities.

 

Edited by Keith Woolford

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