Description

TIGO’s $380M Telefónica Deal: Massive Synergies or Massive Risk?

Millicom International Cellular S.A. has entered a new phase of strategic expansion following its $380 million acquisition of Telefónica Ecuador, coming on the heels of the recently completed Telefónica Uruguay transaction. These moves mark the clearest signal yet that TIGO is actively consolidating high-quality telecom assets across Latin America, prioritizing markets with stable macroeconomic frameworks, dollarized or investment-grade characteristics, and strong demand for digital services. The Ecuador deal expands TIGO’s footprint to 11 countries and adds a meaningful revenue and EBITDA base while reinforcing its position as the leading pure-play telecom operator in the region. At the same time, management has demonstrated unusual balance-sheet discipline for an emerging markets operator, delivering record EBITDA margins near 49%, reducing leverage to just over 2x, and remaining on track for roughly $750 million in equity free cash flow for 2025.