Latin America-focused operator group Millicom rejected Xavier Niel’s latest buyout offer stating that it is still being significantly undervalued, and maintained shareholders should reject Niel’s bid.
Atlas Luxco, a subsidiary of Niel’s Atlas Investissement recently increased its offer from US$24 to US$25.75 per share, valuing the operator at around US$4.4 billion.
Millicom said in a statement that the revised offers “continue to significantly undervalue” the company and recommended that shareholders do not accept any offers from Atlas. It highlighted original points on valuation based on "trading multiples" of comparable companies.
Millicom noted it announced strong Q2 results after Atlas Investissement’s original bid. Atlas Investissement currently holds 29% of shares in Millicom and is aiming to buy the remaining shares with its latest offer by August 16.
