Millicom, EPM sign final merger agreement

Multinational telco Millicom (Nasdaq: MICC) and Colombian state-run multi-utility EPM have signed a final agreement to combine their respective businesses in Colombia, Millicom said in a release. The agreement is now subject to regulatory approval, including corporations, consumer, competition, financial and television authorities. In July, the two companies concluded negotiations on the structure of the merged company, which values Millicom's Tigo Colombia at US$1.3bn and EPM's UNE at around US$2.1bn. EPM will hold the majority stake in the firm, with 50% plus one share, while Millicom will hold the remainder. The transaction is expected to be completed by the end of 1H14. The integrated company is expected to offer a comprehensive range of bundled digital services including mobile and fixed telephone and broadband services, and pay TV. Tigo had a market share of 14.8% of Colombia's mobile lines as of the end of Q1, according to Mintic statistics. However, the company does not currently offer fixed line services in the country. Meanwhile, UNE has only a limited mobile presence, but had a 27.3% market share in fixed line internet and 24.2% of the pay TV market as of the end of Q1.