The Minister of ICT, Mauricio Lizcano, cosigned the agreement, reached by EPM after a month of negotiations (owner of 49.99% of the communications company) together with Millicom (the parent company with the remaining 49.98%).
The Colombian company and the Luxembourg multinational waited until the last hour of the deadline set by the government to conclude an agreement, which is summarized in a capitalization of 600,000 million dollars.
Tigo capitalization will be able to respond with its most urgent commitments and participate in the 5G auction. This week received permission from the Chief Inspector of Industry and Commerce, SIC, to enter into a new partnership with Telefónica and participate in the auction process.
EPM reported that each part will contribute 300 billion Colombian pesos ($71 million).. The total capital contribution amounts to $142 million and will mainly focus on developing Tigo-UNE’s business strategy: prioritizing the construction of digital highways in Colombia, expanding the connectivity service to millions of users and continuing to provide employment (direct and indirect) for thousands of Colombians.
The partners will retain their current share ownership in the company. In addition, the partners agreed to amend the 2013 shareholders’ agreement as follows: Tigo-UNE may reacquire the shares of EPM and Millicom included in this capitalization, as long as the company’s financial circumstances permit.
EPM gets a put option (“put option”) which, if exercised, would force Millicom to purchase all of EPM’s shares in Tigo-UNE, allowing EPM to recover the funds invested in this capitalization.
EPM’s “Public Asset Protection Clause” is extended until December 31, 2026.
By accepting the negotiation, Millicom extends the term of the termination clause. Protection of public heritage until December 2026. This clause is an instrument that EPM has tried to activate and which consists of exchanging shares in the event that the company from Antioquia does not want to continue participating in the venture, to allow them, as the name suggests, to open up the public protect interests. assets.
Source: El heraldo

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