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Millicom International acquires Cablevision Paraguay for USD150mJul 16, 2012 (M2 EQUITYBITES via COMTEX) -- Communications group Millicom International Cellular S.A. (STO:MIC-SDB.ST)(MX:MICCN)(OTC:MIICF) today announced that it has signed a binding agreement to acquire 100% of Cablevision Paraguay for an enterprise value of USD150m. The price offered is reportedly consistent with Millicom's prudent approach to external growth and is said to be a fair reflection of the growth potential of the business. Cablevision Paraguay is controlled by Grupo Clarin S.A. (LSE: GCLA)( BCBA: GCLA), a provider of cable pay-TV services in Paraguay. Revenues for 2011 were USD50.6m and EBITDA was USD20m. At 2011 year end, it covered 470, 000 households and had 116,000 cable TV customers, with close to 10% of them subscribing to fixed broadband services. Also, Cablevision Paraguay has exclusive rights to broadcast Paraguay's soccer championship games. This acquisition is reportedly consistent with Millicom's strategy to accelerate the adoption of fixed broadband services in Paraguay. The impact of the transaction on 2012 financials is expected to be limited and the previously communicated guidance is reiterated, the company said. Completion of the acquisition, which is subject to customary approvals, including from the relevant regulatory authorities in Paraguay, is expected to take place towards year end 2012. Comments on this story may be sent to [email protected] |