Monday, August 31, 2009

Cambodia: Millicom to sell to local partner, since it lacks the scale to succeed in Asia

[wsj] Telecom operator Millicom International Cellular SA (MICC) said Tuesday it has agreed to sell its Cambodian operations for $346 million in cash to The Royal Group, its partner in the country.

The transaction, which is expected to be completed before the end of 2009, comprises Millicom's 58.4% holdings in each of CamGSM, Royal Telecam International and Cambodia Broadcasting Services.

It values the Cambodian operations at an enterprise value of $605 million, representing an estimated 7.1 times 2009 earnings before interest, taxes, depreciation and amortization, or Ebitda.

Luxembourg-based Millicom, which is listed on Nasdaq and the Stockholm stock exchange, earlier this year decided to divest its Asian operations and focus on Africa and Latin America.

It said July 2 that the units in Cambodia, Sri Lanka and Laos will be classified as "assets held for sale" and that it had received expressions of interest from a number of parties.

"We don't think that we have the critical mass to operate in Asia," Millicom Chief Financial Officer Francois-Xavier Roger told Dow Jones Newswires in an interview last month, adding that the proceeds from a sale of the Asian assets will be used to invest in external growth, repaying debt, or distributing part of the money to the owners through dividends and share buybacks.

Millicom To Sell Cambodian Operations For $346M

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