Aug 11, 2009 (LBO) – Luxembourg-based Millicom International Cellular which has put its Asian units on sale will sell 58.4 percent stake in its Cambodia unit to The Royal Group, its local partner, the company said. The stake in CamGSM will go for 346 million US dollars, valuing the unit at 605 million US dollars or 7.1 time estimated 2009 EBITDA (earnings before interests tax depreciation and amortization), the company said.
“We are delighted to reach agreement on the sale of our Cambodian operations to our local partner, the Royal Group,” Millicom chief executive Mikael Grahne said in a statement.
“We are very proud of having played an important role in the development of the leading mobile operator in Cambodia and are very confident of the continued success of Mobitel and its people within the Royal Group.”
If regulatory approvals are obtained the sale is expected to be completed before the end of 2009.
Millicom’s Sri Lanka and Lao units are also on sale.