Xavier Niel’s $4.1 billion bid for Millicom is too low, company says 

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It was first revealed that Niel was pondering the Millicom acquisition in May

French billionaire Xavier Niel has offered to buy out the shareholders of Latin American telco group Millicom, valuing the group at $4.1 billion. Niel already owns a 29% stake in the company though his firm Atlas Investissement. 

In a press release published today, it was confirmed that Atlas Luxco, a subsidiary of Atlas Investissement, has made an offer of $24 per share, working out at approximately $4.1 billion. 

According to Millicom, a committee of independent members of the Board of Directors of Millicom has concluded that “unanimously believes and has informed Atlas that a $24 per share offer price would significantly undervalue Millicom and not be in the best interests of Millicom’s shareholders. The independent committee’s belief takes into consideration, among other things, Millicom management’s latest review of financial performance”. 

In May, Atlas announced its interest in exploring the acquisition of Millicom, after which Millicom Board of Directors released a statement confirming that it has received a non-binding expression of interest from Atlas. 

“Atlas believes that the Company will benefit from the Purchaser Group’s long-term knowledge and experience in the telecoms sector across numerous jurisdictions, as well as the creation of potential synergies that will allow Millicom to be better equipped to focus on long-term business goals, including pursuing any potential strategic transactions and acquisitions,” read the press release. 

Millicom has not formally rejected the offer, but has said it will “carefully review any information disclosed by Atlas in connection with its anticipated tender offer and will issue the committee’s formal recommendation to Millicom’s shareholders” in accordance with takeover rules. 

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