Atlas Investissement, the investment vehicle of French billionaire Xavier Niel, is preparing to acquire Millicom, a Luxembourg-based mobile phone operator, according to a statement released Thursday. The deal would value the company at $4.1 billion.
Millicom, a good financial bet
It all began in November 2022, specifically on the 5th. That day, Atlas Investissement announced the acquisition of a 7% stake in Millicom. In February 2023, the company announced an increase in its share to 20%. Today, Atlas Investissement has become the majority shareholder, holding 29%. A complete buyout seems the logical next step.
Through its TIGO brand, Millicom provides fixed and mobile telephone services in Latin America. The company is publicly traded in the United States, where its market capitalization reached $3.54 billion in February 2023. At that time, it claimed to have 20,000 employees.
In 2022, its sales reached $5.62 billion, up 3.3%, with an operating margin of $915 million. Last year, its revenue reached $5.6 billion. According to a statement from Atlas Investissement, discussions regarding a takeover are only in the preliminary stages.
The focus now seems to be primarily on exploring financing options. Atlas’s goal is reportedly to support a $24 per share offer for Millicom. Millicom’s shares have also risen 33% since the beginning of the year. Following the announcement, they increased by 2.3% in New York.
Xavier Niel is expanding his empire to Latin America
Its board of directors confirmed receiving an expression of interest from Atlas. However, Atlas Investissement indicated that it remains possible no concrete offer will be submitted. This is especially true given its potentially high debt level, which could be an obstacle.
However, beyond these respectable financial results, it is its presence in Latin America that should attract Xavier Niel . By acquiring Millicom, Atlas Investissement would almost double its number of clients.
The operator has 45 million subscribers in Latin America through its TIGO brand. Atlas, for its part, has 50 million subscribers, spread across nine European countries.
When the head of Free acquired a stake in Millicom, the latter became a target for Apollo Global Management. Discussions for a takeover were even initiated, before being abandoned.
It should be noted that Maxime Lombardini became the new director of Millicom this Thursday. Between 2007 and 2020, he successively served as CEO, Chairman of the Board, and then Vice-Chairman of the Board of Iliad , a group founded by Xavier Niel.
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