SCHEDULE: Atlas Investissement Boosts Millicom Stake via Options

Atlas Investissement increases economic exposure to Millicom International Cellular S.A. shares through new call spread option transactions with three major banks.

Summary

• Atlas Investissement SAS, along with its controlling entities (Iliad Holding SAS, Maya SAS) and the Niel Family (Xavier, Jules, John, Elisa, Joseph Niel), beneficially owns 70,470,018 common shares of Millicom International Cellular S.A., representing 42.2% of the outstanding shares as of July 31, 2025.
• Entered into European-style call spread option transactions with Credit Agricole Corporate and Investment Bank, Natixis, and Societe Generale on August 20, 2025.
• Each transaction provides economic exposure to up to 1,111,111 Millicom common shares, totaling 3,333,333 shares across the three agreements.
• The transactions are divided into 40 tranches of approximately equal size (27,777 or 27,808 options per tranche), with staggered expiration dates.
• Settlement can be in cash or physical shares for Call Options 1 (Counterparty's choice), while Call Options 2 will be cash-settled.
• The initial hedging period for the banks to establish their positions begins on August 20, 2025, and ends on the earlier of the 10th Exchange Business Day or when hedging is complete.
• Atlas Investissement has the right to early terminate the transactions in whole prior to the first Valuation Date with one Exchange Business Day notice.

Sentiment

Score: 7

Explanation: The filing indicates a strategic move by a significant shareholder to increase economic exposure to Millicom, suggesting a positive long-term outlook. However, the use of complex derivatives introduces some opacity and potential risks related to market disruptions and hedging.

Positives

• Atlas Investissement is increasing its economic exposure to Millicom, signaling continued confidence in the company's future performance.
• The structured nature of call spread options allows for leveraged exposure while potentially limiting downside risk compared to direct share purchases at higher prices.

Negatives

• The transactions introduce complexity through derivative instruments, which can be less transparent than direct equity holdings.
• The 'Other Share Option Transactions' clause suggests a broader, potentially complex, derivative strategy that is not fully detailed in this filing.

Risks

• Market Disruption Events or Liquidity Events could lead to adjustments in the number of tranches, options, or expiration/settlement dates, or even termination of the transaction.
• Changes in law or increased cost of hedging could impact the banks' ability to manage hedge positions, potentially leading to adjustments or termination.
• Counterparty's proprietary trading activities by the banks or their affiliates could adversely affect Atlas Investissement's position under the transaction.
• The Counterparty is restricted from purchasing or selling additional shares or derivatives during the initial hedging period and on expiration dates, except under specific conditions, which could limit flexibility.

Future Outlook

The transactions provide Atlas Investissement with economic exposure to Millicom shares, indicating an expectation of future share price appreciation within the defined strike price range. The staggered expiration dates across 40 tranches suggest a long-term, managed approach to this exposure.

Industry Context

This filing reflects a significant shareholder's continued strategic interest in Millicom, a major telecommunications and media company operating in Latin America. The use of call spread options is a common financial strategy for large investors to gain or increase exposure to a stock, manage risk, and potentially enhance returns without directly purchasing all underlying shares. This type of derivative transaction can be used to express a bullish view on the stock while defining risk parameters.

Comparison to Industry Standards

• The use of ISDA Master Agreements and Equity Derivatives Definitions is standard practice for complex over-the-counter derivative transactions in the financial industry.
• The adherence to Rule 10b-18 guidelines for hedging activities by the banks is a common regulatory compliance measure for share repurchases and hedging in the U.S. market, ensuring orderly trading and preventing market manipulation.
• The structure of call spread options is a widely recognized strategy in equity derivatives, often employed by institutional investors to fine-tune their market exposure and risk profile.

Corporate Governance

Stakeholder Impact

• Shareholders: Increased economic exposure by a major shareholder (Atlas Investissement) could be seen as a vote of confidence, potentially influencing market perception positively. The derivative nature means direct share ownership percentage doesn't immediately change, but economic interest does.
• Company (Millicom): The transactions do not directly impact Millicom's operations or financial health, but reflect a significant investor's strategy regarding its shares.
• Financial Institutions (Credit Agricole, Natixis, Societe Generale): These banks are engaging in hedging activities, which will involve trading Millicom shares, potentially affecting daily trading volumes and price dynamics during the hedging period.

Next Steps

• Banks will establish initial hedge positions during the Initial Hedging Period, which ends on the earlier of the 10th Exchange Business Day following August 20, 2025, or when hedging is complete.
• The Transaction Supplement will be delivered by the banks to the Counterparty following the Initial Hedging Period End Date, specifying the Initial Reference Price and other details.
• The 40 tranches of options will have staggered expiration dates, leading to future settlement events.

Key Dates

Recommendation

The filing indicates a strategic move by a significant existing shareholder, Atlas Investissement, to increase its economic exposure to Millicom International Cellular S.A. shares through call spread options. This suggests a continued positive outlook from a major investor. However, the filing primarily details the mechanics of derivative transactions rather than providing new fundamental information about Millicom's operational or financial performance. While the increased economic interest is a positive signal, a 'hold' recommendation is appropriate as the direct impact on the company's intrinsic value or immediate share price is not explicitly detailed, and further analysis of Millicom's core business and financial results would be required for a stronger recommendation.

Keywords

Millicom International Cellular, Atlas Investissement, Call Options, Equity Derivatives, Schedule 13D, Share Options, Hedging, ISDA, Telecommunications, Investment