Millicom (Tigo) Raises Target For 2022-2024 Period To "Around $600M", From "At Least $500M" Previously And Launches Share Repurchase Program Of Up To 2M Swedish Depository Receipts Representing Ordinary Shares
Portfolio Pulse from Benzinga Newsdesk
Millicom (Tigo) has increased its cumulative Equity Free Cash Flow target for 2022-2024 to around $600 million, up from the previous target of at least $500 million. This adjustment is due to expected savings from Project Everest, a shared mobile network in Colombia, and other initiatives. The company anticipates 2024 to be the peak year for EFCF, despite higher spectrum payments and severance charges in 2023. Additionally, Millicom has launched a share repurchase program for up to 2 million Swedish Depository Receipts to support its share-based incentive plans, with repurchases occurring between December 18, 2023, and May 22, 2024, subject to a maximum of SEK 420 million or 2 million SDRs.
December 14, 2023 | 9:22 pm
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Millicom (Tigo) has raised its EFCF target for 2022-2024 and initiated a share repurchase program for up to 2 million SDRs. The repurchase is aimed at fulfilling obligations for share-based compensation plans.
The increase in the EFCF target suggests a positive outlook on the company's financial performance and efficiency gains, which could boost investor confidence. The share repurchase program demonstrates a commitment to returning value to shareholders and supporting the company's share price, which may be viewed favorably by the market. However, the impact of higher spectrum payments and severance charges in 2023 could temper some of the positive sentiment.
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