Luxembourg-based Millicom International Cellular, which trades as Tigo, has signed agreements for the sale of its operations in Tanzania and its stake in the AirtelTigo joint venture in Ghana, marking its complete exit from the African continent.
The telco said on Monday that the successful conclusion of the two transactions will complete its multi-year plan to divest its African operations and focus on its Latin American markets.
In Tanzania, Millicom has agreed to sell its entire operations to a consortium led by Axian, a Pan-African group that was part of the consortium that acquired Millicom’s operations in Senegal in 2018.
In Ghana, Millicom along with its joint venture partner Bharti Airtel Limited have signed a definitive agreement for the transfer of AirtelTigo to the Government of Ghana.
Millicom will take a $25 million charge as a result of this agreement.
“Today Tigo is a leading provider of broadband services to consumers, businesses and governments in Latin America, where penetration and data speeds remain low by the standards of more mature markets,” said Mauricio Ramos, the chief executive of Millicom.
“Through our investment-led strategy, we are bringing reliable high-speed mobile and fixed broadband to the communities we serve in the region. With today’s announcement that we are divesting our remaining African businesses, we close a chapter in our history and open another solely focused on the Latin American region.”
Millicom was founded in 1990 is a provider of cable and mobile services dedicated to emerging markets in Latin America and Africa, trading through the brand name Tigo.
Tigo officials in Tanzania have yet to comment on the exit which Millicom did not give a timeline for its completion.
Tigo is Tanzania's second-largest telecommunications operator after Vodacom with over 13 million subscribers as at end of December 2020.