Etisalat is buying the Sri Lankan mobile network, Tigo from its current owners, Millicom International for approximately US$155 million in total cash proceeds.
The transaction values the Sri Lanka operation at an enterprise value of $207 million, which represents approximately 7.4x estimated 2009 EBITDA. The transaction is not subject to any conditions and is expected to close on or before October 20, 2009.
Mikael Grahne, President and CEO of Millicom, commented: "We are very pleased to have agreed to sell our Sri Lanka operations to Etisalat. Our management team there has performed very well in establishing a strong market position and I would like to thank all our employees in Sri Lanka for their contribution over the years.
"This agreement represents the final element of our recent divestment program and, upon completion of the previously announced transactions concerning our Cambodian and Laotian operations, will leave the Group well positioned to focus on the significant long term growth opportunities in Latin America and Africa."
According to figures from the Mobile World subscriber database, Tigo had 2.25 million customers at the end of June, representing a market share of 18%.