Millicom International Cellular S.A. ("Millicom”) (NASDAQ:MICC)
(Stockholmsbörsen: MIC) announced today that it is restating its
full-year financial statements for 2010 as well as its interim quarterly
financial statements for the periods ended September 30, 2010 to
September 30, 2011 to reflect a revised accounting treatment of the put
option provided to its local partner in the July 1, 2010 Honduras
transaction. The amended accounting treatment of the put option and
consequent restatements have no effect on reported revenues, EBITDA,
operating cash flow, dividends and guidance.
On July 1 2010, Millicom reached an agreement with its local partner in
Honduras whereby Millicom’s local partner granted Millicom an
unconditional call option for a duration of five years for his 33%
stake. At the same time, Millicom granted a put option for the same
duration to its local partner, exercisable in the event of a change of
control of Millicom or the Honduras subsidiary. As a result of the
transaction, Millicom started to consolidate fully its subsidiary in
Honduras.
Following a reassessment of the accounting treatment of the Honduras
transaction, Millicom has retroactively recorded a liability for the put
option at July 1, 2010 of $737.4m, representing an estimate of the net
present value of the redemption amount of the put option at that date in
accordance with IAS 32.23 and a corresponding decrease of shareholder’s
equity. Millicom has also recorded a financial expense/income for each
subsequent reported period to reflect the change in value of the put
option liability in accordance with IAS 39. Such financial
expense/income has impacted net profit negatively for 2010 by $32m (less
than 2% of reported net profit) and positively for the first nine months
of 2011 by $50.8m.
There is no change to the economic substance of the put option and
accordingly to its fair value, which is assessed as not material for
each of the restated reporting periods. In addition, this does not
impact the full consolidation of Millicom’s Honduras subsidiary from
July 1, 2010.
Please find attached unaudited restated historical financial information
as of and for the year ended December 31, 2010 as well as for interim
periods from September 30, 2010 to September 30, 2011. Millicom expects
to publish audited restated financial statements for 2010 and 2011 on
March 2, 2012 in its 2011 Annual Report on Form 20-F.
About Millicom
Millicom International Cellular S.A. is a global telecommunications
group with mobile telephony operations in 13 countries in Latin America
and Africa. It also operates various combinations of fixed telephony,
cable and broadband businesses in five countries in Central America. The
Group’s mobile operations have a combined population under license of
approximately 265 million people.
This press release may contain certain "forward-looking statements” with
respect to Millicom’s expectations and plans, strategy, management’s
objectives, future performance, costs, revenues, earnings and other
trend information. It is important to note that Millicom’s actual
results in the future could differ materially from those anticipated in
forward-looking statements depending on various important factors.
Please refer to the documents that Millicom has filed with the U.S.
Securities and Exchange Commission under the U.S. Securities Exchange
Act of 1934, as amended, including Millicom’s most recent annual report
on Form 20-F, for a discussion of certain of these factors.
All forward-looking statements in this press release are based on
information available to Millicom on the date hereof. All written or
oral forward-looking statements attributable to Millicom International
Cellular S.A., any Millicom International Cellular S.A. employees or
representatives acting on Millicom’s behalf are expressly qualified in
their entirety by the factors referred to above. Millicom does not
intend to update these forward-looking statements.
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