Summary
Millicom International Cellular SA (TIGO, Financial) announced on April 23, 2025, that it has completed the delisting of its Swedish Depositary Receipts (SDRs) from Nasdaq Stockholm, effective March 17, 2025. This move consolidates its common shares listing solely on the Nasdaq Stock Market in the United States. SEB, the custodian bank for the SDR program, has completed the sale of approximately 5,110,103 shares underlying the SDRs that were not withdrawn by holders before the delisting. The net proceeds from these sales are expected to be distributed to former SDR holders in early May.
Positive Aspects
- Millicom has successfully streamlined its stock listing to focus on the U.S. market, potentially increasing its visibility and investor base.
- The sale of SDRs by SEB ensures that former SDR holders will receive their proceeds, maintaining investor trust and satisfaction.
Negative Aspects
- The delisting from Nasdaq Stockholm may reduce Millicom's exposure to European investors.
- There could be potential short-term volatility as the market adjusts to the new listing structure.
Financial Analyst Perspective
From a financial standpoint, Millicom's decision to delist from Nasdaq Stockholm and focus on the U.S. market could be seen as a strategic move to consolidate its investor base and potentially attract more U.S.-based institutional investors. This could lead to increased liquidity and a more stable stock performance in the long term. However, the transition period might bring some volatility as European investors adjust to the changes.
Market Research Analyst Perspective
As a market research analyst, the consolidation of Millicom's stock listing to the U.S. market aligns with the company's strategic focus on expanding its presence in the Americas. This move could enhance its brand recognition and investor relations in the region. However, the company must ensure effective communication with its European stakeholders to mitigate any negative perceptions resulting from the delisting.
Frequently Asked Questions (FAQ)
Q: When did Millicom complete the delisting of its SDRs from Nasdaq Stockholm?
A: The delisting was completed on March 17, 2025.
Q: How many shares were sold by SEB?
A: SEB sold approximately 5,110,103 shares underlying the SDRs.
Q: When can former SDR holders expect to receive their proceeds?
A: The net proceeds are expected to be distributed in early May.
Read the original press release here.
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