Millicom International Cellular (MICC) Proposed Sale of Millicom's Cambodian Operations For $346M

August 11, 2009 8:34 AM EDT

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Millicom International Cellular S.A. (NASDAQ: MICC) announces that it has signed an agreement for the sale of its Cambodian operations to The Royal Group, its partner in Cambodia, for $346m in cash, payable on completion. This transaction comprises Millicom's 58.4% holdings in CamGSM, Royal Telecam International and Cambodia Broadcasting Services. The transaction values the Cambodian operations at an enterprise value of $605 million, which represents 7.1x estimated 2009 EBITDA.

Completion of the transaction is subject to customary financing and regulatory approvals. If such approvals are obtained, completion is expected to take place before the end of 2009.

Mikael Grahne, President and CEO of Millicom, commented: "We are delighted to reach agreement on the sale of our Cambodian operations to our local partner, the Royal Group. We are very proud of having played an important role in the development of the leading mobile operator in Cambodia and are very confident of the continued success of Mobitel and its people within the Royal Group."