EPM Begins Process To Divest UNE Shares

Empresas Públicas de Medellín (EPM) has formally launched the first stage of its divestment process for its majority stake in UNE EPM Telecomunicaciones S.A., following temporary registration approval from Colombia’s Financial Superintendence (Superintendencia Financiera de Colombia) for the shares in the National Registry of Securities and Issuers (RNVE).

The offering began on October 10, 2025, and involves the sale of 5,015,035 shares, representing 50.00001% of UNE’s subscribed and paid-in capital. This marks the initial phase of a multi-stage divestment plan authorized under Law 226 of 1995 (text of Law 226) and Law 798 of 2002, which govern the privatization of state-owned equity and establish conditions for democratization of ownership.

In accordance with Article 3 of Law 226, the first stage is restricted to entities and individuals eligible for special conditions. These include:

• Active and retired employees of EPM
• Associations of current or former employees
• Labor unions
• Employee funds
• Severance and pension funds
• Cooperative organizations

The offering notice has been published in two national newspapers and is also available on EPM’s dedicated portal: epm.com.co/institucional/enajenacion-de-acciones-de-epm-en-une. The site includes relevant documentation such as the sale program, regulatory framework, UNE’s prospectus, and the official offering announcement.

If the shares are not fully acquired during the first stage, EPM will proceed to a second phase, open to the general public. This phase allows any natural or legal person to submit purchase offers under conditions defined in the corresponding regulations.

Should shares remain unsold after both stages, EPM is contractually obligated to offer the remaining stake to Millicom International Cellular S.A. (Millicom), which holds a preemptive right under UNE’s bylaws and the UNE Shareholders’ Agreement. Millicom (NASDAQ: TIGO; Stockholm: TIGO_SDB) may choose to exercise this right or opt to participate in a broader public offering that could include shares held by both EPM and Millicom.

Millicom and EPM previously amended their shareholder agreement to include a put option for EPM and extended the “Public Property Protection Clause” until December 31, 2026.

The divestment follows approval by the Medellín City Council in August 2024 and subsequent ratification by EPM’s board in July 2025. The minimum price per share has been set at $418,741 COP, valuing the total stake at approximately $2.1 trillion COP.

UNE EPM Telecomunicaciones, operating under the Tigo brand (Tigo Colombia), is a telecommunications provider jointly owned by EPM and Millicom. The company offers fixed and mobile services across Colombia and has undergone integration with Millicom’s operations since 2014.

EPM has stated that it will remain a 100% publicly owned entity, and the divestment is part of a broader strategy to refocus on its core utilities businesses, including energy, water, and waste management.

Federico Gutiérrez Zuluaga, mayor of Medellín, and John Maya Salazar, general manager of EPM. Photo credit: EPM.