The ICT Minister, Mauricio Lizcano, requested a meeting of the Tigo board of directors with the Medellín Mayor’s Office after the Board of Directors of the Medellín Public Companies (EPM), chaired by Mayor Daniel Quintero Calle, asked Millicom, the company in charge of the administration of Tigo Unite a detailed report on the financial situation of the company.
The company closed last year with revenues of $5.44 billion, a growth of 5.9 percent over 2021. But the net result closed at -$474,000 million.
The company explained that the result was due to macroeconomic variables, such as inflation, the depreciation of the currency and also a higher expense for amortization and interest associated with the acquisition of spectrum in the 2019 700MHz auction.At the end of the first quarter of 2023, the company reflects a loss of $148,395 million.
MinTIC antenna 5G auction
Photo:
Lizcano has said that the idea is that the directors of TIgo meet with the Presidential Advisor for Digital Transformation, Saúl Kattan, and the Mayor of Medellín, Daniel Quintero to find solutions.
Quintero has indicated that information has been requested on compliance with payments to suppliers and the ability to maintain the commitments acquired for the month of June. Even that the company would be lost.
besides, The president pointed out that the idea is to request a loan for $860,000 million to pay debts with suppliers.
The Board of Directors of EPM has requested Millicom to immediately report on the financial situation of Tigo-UNE to the Financial Superintendence, of Companies, the SIC and the Mintic.
—Daniel Quintero Calle (@QuinteroCalle) May 26, 2023
This year, the company has some expenses to advance, as in the renewal of the spectrum and the auction that the National Government is preparing to advance in 5G.
Since 2013, the telecommunications portfolio of EPM and Tigo, owned by Millicom, merged. Initially, EPM was left with 50 percent plus one share, while Millicom was left with the remaining percentage, however, the paisa company ceded control in exchange for the payment of a premium, Therefore, today it does not administer nor is it the majority when it comes to making decisions, but it is Millicom who does it.
The mayor of Medellín, Daniel Quintero, who is the president of EPM’s board of directors, has said that Millicom asks to capitalize Tigo UNE with $750,000 million and that EPM has to give half of these resources, to obtain them, it is necessary to have the approval of the Council of Medellín but they have not been able to have the approval, because on five occasions they have warned of the risks, due to the amount of investment that is requires and that is close to $1 trillion per year.
