Millicom to Return Up to $800 Million to Shareholders

Millicom International Cellular has decided to return US$800 million to shareholders through a combination of a special dividend and a share buyback. Subject to the approval of shareholders at the Annual General Meeting, Millicom will pay a special dividend of $4.60 per share to Millicom shareholders, equivalent to $500 million in total. The special dividend is in addition to the proposed 2009 annual dividend of $1.40.

In addition, Millicom will initiate a share repurchase plan of up to $300 million. The share repurchase plan is to be executed through open market purchases on NASDAQ by the end of 2010 within the authorisations obtained at the 2009 Annual General Meeting. Further authorisation to complete the share repurchase plan will be sought from shareholders at the May 2010 AGM.

Mikael Grahne, President and CEO of Millicom, said: "Millicom has a strong balance sheet and is now generating significant and sustainable cash flows. We have also enjoyed the receipts from the majority of our Asian disposals. As a result, we are delighted to be returning $800 million to shareholders, demonstrating our commitment both to enhancing the returns from holding Millicom shares, and to improving the efficiency of our capital structure.

"At the same time we are retaining sufficient liquidity to fund our ongoing investment requirements and potential external growth opportunities, with an expected net debt to EBITDA ratio of less than 1 after the payment of the dividends and the completion of the share buyback program."