Millicom acquired Amnet Telecommunications Holding Limited (Amnet) at the beginning of Q4 2008. Amnet is now a business with approximately 534 thousand revenue generating units (RGUs) across Central America with cable and broadband customers in El Salvador, Honduras and Costa Rica and smaller corporate data businesses in Guatemala and Nicaragua. Amnet also has fixed telephony customers in El Salvador and Honduras.
Millicom purchased Amnet for an enterprise value of $510 million, which was funded through a $230 million one-year bridge loan facility with two leading commercial banks and $280 million of cash.
Revenues increased by 15% in 2008, mainly driven by the broadband business and RGUs increased by 16% year on year. Amnet has an extensive HFC (62,000 Km of Hybrid Fiber-Coax) network with 1.2 million homes passed and today some 70% have two-way coaxial cable.
The opportunity for Millicom is to use Tigo´s marketing skills to sell broadband services to existing cable customers and to provide a fixed element to our broadband offer. Amnet has number one positions in its three main markets which will give Millicom critical mass in this important segment of the market, which we expect to be a major driver of growth going forward. Millicom is planning to outsource a number of functions to increase operating efficiency and to reduce operating costs in the coming years.