debt service coverage ratio ebitda

Millicom shareholder wealth increases

The Board of Directors of Millicom International Cellular SA (MICC) has decided to increase shareholder value through a combination of special dividends in addition to the share repurchase program. The company will deliver enough U.S. $ 800 million through this unique combination.

The Administration has decided to pay a special dividend of $ 4.60 per share to the project in 2009 an annual dividend of $ 1.40. The special dividend will be worth $ 500 million. The remaining $ 300 million paid through a share repurchase program to buy open market the Nasdaq in late 2010. These two decisions are still subject to shareholder approval at the Annual General Meeting May 25, 2010.

Is an operator Millicom International mobile services in 13 countries in Latin America and Central America and Africa. The company has a market share of approximately 53% in the regions of Central America, 16.3% in Latin America, and 30.8% in Africa.

Recently, Millicom sold substantially all of its operations Asia for more than $ 550 million. The company began to produce sustainable cash flow. EBITDA margin above the long-term goal of 45% announced by management. In addition, sales to higher margin value-added services is now more than 21% of total revenue. This can further improve the bottom line in the future.

Given that much of the fiscal 2008 capital expenditures were used to improve network coverage is expected to win Millicom expansion services. The company said capital spending is reduced to $ 700 million in 2010 compared to 737 million last year, improving the company's ability to generate significant positive free cash.

All these events bullish enable management to improve shareholder wealth. Millicom said that net debt / EBITDA remains below 1, after payment of dividends and share repurchase completion offered.

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Millicom Raises Shareholder Wealth