Bondholders agree on UNE-EPM, Millicom merger

Juan Fernandez Gonzalez | 06-02-2014

UNE-EPM and Millicom's bondholders have decided to move forward in the merger process, with Millicom's bondholders agreeing to UNE's takeover through a voting process during a general assembly.

The next steps for the merger include the Government's analysis of the operation regarding telecoms regulations, but the bondholders' assembly will fully support the process from now on.

UNE-EPM intends to get a bigger slice of the market and start to compete with Colombia's two main telcos, Telefónica and Claro. Indeed, UNE-Millicom will overtake the Spanish company in customer numbers if the merger goes ahead.

According to UNE, the operation aims to create a solid company of ICT services and aims to consolidate a converging offer of telecom products in Colombia.

Over the past few years UNE-EPM has been trying to establish its position in several telecoms sectors, especially pay-TV, Internet and mobile communications. During 2013, it started 4G deployment in Colombia, which has driven high revenues and a 10% growth in income.