fbpx

M&A Africa: Millicom To Sell DR Congo Subsidiary To Orange For $160M

M&A Africa: Millicom To Sell DR Congo Subsidiary To Orange For $160M

Millicom has agreed to sell its subsidiary Tigo in the Democratic Republic of Congo to French-owned Orange, subject to regulatory approval.

According to a statement posted on Orange website on Monday, Millicom has will sell all of its stake in Tigo to Orange for a total cash consideration of $160 million.

“The sale of Tigo DRC is in line with our strategy of supporting consolidation and concentrating our resources in our most promising markets,” Millicom’s Chief Executive, Mauricio Ramos, said.

“Proceeds from the sale will strengthen our balance sheet allowing us to reinvest in our existing Latin American and African markets, improving earnings and cash flow and reducing leverage.”

Orange said the takeover will significantly enhance its presence in the second-largest mobile market in Central and West Africa, which counts more than 40 million subscribers.

Vodacom is the largest operator in DRC, while Airtel and Africell are also active in that market.

Acquisition of Tigo will be Orange’s third deal in Africa this year, and will bring its footprint on the continent to 20 countries.

In January, Orange agreed to buy Cellcom in Liberia and Airtel’s operations in Burkina Faso and Sierra Leone, Telecompaper reported.