Millicom (Tigo) signs agreement to acquire Entel Peru, expanding its presence across Latin America

Millicom (Tigo) signs agreement to acquire Entel Peru, expanding its presence across Latin America

The transaction expands Millicom’s presence in investment-grade markets and is expected to be accretive to equity free cash flow in the first year following completion. Closing is expected in early December, subject to customary closing conditions.

Luxembourg, November 13, 2026 – Millicom (NASDAQ: TIGO) today announced that it has signed an agreement to acquire Entel Peru for US$1,714 million, including lease liabilities, implying a transaction multiple of 5.0x estimated 2026 EBITDA, before synergies and integration costs. This transaction marks another important step in Millicom's regional growth strategy and is expected to be funded through a combination of local financing and cash on hand. The purchase price will be paid in three installments: 65% at closing, 10% twelve months after closing, and 25% eighteen months after closing. The transaction is expected to close in early December 2026, subject to satisfaction of certain closing conditions.

Upon completion, the acquisition would expand Millicom’s footprint to 13 markets and further advance its strategy of geographic diversification, increasing its presence in investment-grade economies. Peru, which holds investment-grade sovereign ratings from Moody’s, S&P and Fitch, offers a market of more than 34 million people and an attractive foundation for long-term growth in connectivity and digital services.

Entel Peru’s established network, strong postpaid customer base and enterprise relationships provide an attractive platform for profitable growth. Following completion, Millicom intends to build on these strengths by applying its operational improvement capabilities, regional purchasing power and disciplined approach to capital allocation. The Group sees significant opportunities to improve efficiency, optimize working capital and strengthen cash generation, while preserving service quality and customer experience.

The acquisition would also create opportunities to expand higher-value services for consumers and businesses. Entel Peru’s access to an extensive fiber footprint through wholesale partnerships, combined with Millicom’s experience in mobile and home connectivity, would support capital-efficient growth in convergent services, stronger customer relationships and additional recurring revenues.

Millicom expects the transaction to be accretive to equity free cash flow in its first year following completion, consistent with the approach taken in its recent Telefónica acquisitions. Despite the anticipated closing late in the year, the Group expects year-end 2026 leverage to remain around 2.5x, including the acquisition. The transaction is not expected to adversely affect planned shareholder distributions and is expected to strengthen the Group’s capacity to support distributions over time through increased cash generation.

Marcelo Benitez, CEO of Millicom, commented: “We are very excited about entering Peru, a great country with tremendous potential and an important new chapter in our growth journey across Latin America. Over the past few years, we have demonstrated our ability to successfully integrate new operations, improve customer experience and deliver strong financial results. We have a proven playbook built around our Double-E strategy: delivering the best customer Experience with the greatest Efficiency. We are confident in our ability to replicate that success in Peru. Entel Peru brings a strong network, loyal customers and a talented team. Together, we see a great opportunity to invest in connectivity, bring better services and greater value to Peruvian consumers and businesses, and contribute to the country’s digital development. Our focus remains the same: disciplined execution, profitable growth and sustainable cash flow generation. We look forward to welcoming the Entel Peru team to the Millicom family and building a successful future together.”

Peru: An attractive platform for long-term growth

• A sizeable market with significant digital potential: With more than 34 million people, Peru offers a substantial customer base for mobile connectivity, home broadband and enterprise solutions. Millicom sees opportunities to deepen digital adoption and expand higher-value services for households and businesses.
• A growing economy with an attractive medium-term outlook: The IMF’s October 2026 projections anticipate economic growth of 2.9% in 2027 and 3.2% in 2028, with nominal GDP reaching approximately US$414 billion in 2027. Strong macroeconomic institutions, relatively low public debt and substantial international reserves provide a supportive foundation for long-term investment.
• Investment-grade credentials and international investor confidence: Peru holds investment-grade sovereign ratings of Baa1 from Moody’s, BBB from Fitch and BBB− from S&P. As of November 5, 2026, its J.P. Morgan sovereign bond spread stood at 121 basis points, approximately 43% below the Latin American benchmark, placing Peru among the region’s lowest sovereign-risk markets.
• Growing demand for recurring connectivity services: Mobile service revenues increased by 5.6% and fixed internet revenues by 5.8% in 2025, according to OSIPTEL. Postpaid and controlled-plan mobile subscriptions grew by 10.1%, highlighting an expanding market for recurring services and deeper customer relationships.
• Expanding fiber adoption across the country: Fiber connections grew by approximately 21% in 2025, with growth exceeding 26% outside Lima and Callao. This expansion supports opportunities to combine mobile and home broadband services, improve customer retention and bring advanced connectivity to more communities.
• A strong fit with Millicom’s capabilities: These market dynamics offer an attractive setting for Millicom to apply its regional scale, experience in convergent services and disciplined investment approach. Following completion, the Group would seek to translate this potential into profitable growth, stronger cash generation and lasting benefits for customers.

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About Millicom
Millicom (NASDAQ: TIGO) is a leading provider of fixed and mobile telecommunications services in Latin America. Through its TIGO® and Tigo Business® brands, the company provides a wide range of digital services and products, including TIGO ONEtv for pay TV, high-speed data, voice, and business-to-business solutions such as cloud and security. As of September 30, 2026, Millicom, including its Honduras Joint Venture and Chile associate, employed approximately 19,000 people and provided mobile and fiber-cable services through its digital highways to more than 65 million customers, with a fiber-cable footprint over 28 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg with principal executive offices in Doral, Florida.