Millicom agrees to buy Entel Peru for $1.714 billion

what happened

Millicom (Tigo) has signed a deal to take over Entel Peru, according to Dow Jones Newswires, which relayed the operator's press release. The price is $1,714 million including lease obligations, equal to 5.0 times estimated 2026 EBITDA before synergies and integration costs.

The buyer will pay in three parts: 65% when the deal closes, 10% a year later and 25% after eighteen months. Financing will come from a mix of local borrowing and existing cash. Closing is targeted for early December 2026, subject to standard conditions, and would take Millicom's footprint to 13 markets.

The company says the acquisition should be accretive to free cash flow per share in the first year after closing. It expects leverage at the end of 2026 to be around 2.5x including the purchase, and says planned shareholder payouts should not be affected.

why it matters

For investors, the deal is a sign that Millicom is shifting more of its business toward countries with investment-grade sovereign ratings. Peru is presented as a market of over 34 million people with rising demand for mobile and home connectivity, so the share price effect will depend on how quickly the promised efficiencies are delivered.

market impact

Millicom (TIGO): large acquisition that raises leverage but adds an investment-grade market in Peru.

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