Colombian public services company Empresas Publicas de Medellin (EPM) said its board had approved injecting 300 billion pesos (US$70.5 million) into Tigo, the country’s third-largest cellphone operator, which it jointly operates with Millicom.
Millicom had proposed that the partners put up a total of 600 billion pesos (US$141.1 million) for the subsidiary, which had 15.1 million clients at mid-year.
“With this decision, EPM’s board of directors affirms its commitment to searching for alternatives to ensure the viability of Tigo-UNE, and the wellbeing of all its interest groups,” EPM said in a statement Wednesday evening.
EPM, controlled by the central city of Medellin, said the capital injection, meant to strengthen Tigo’s cash flow, is subject to necessary authorizations.
Millicom did not immediately respond to a request for comment.
- ($1 = 4,252.09 Colombian pesos) (Reporting by Luis Jaime Acosta; Writing by Kylie Madry; Editing by Richard Chang)
