Millicom eyes Zain Africa assets

By Helena Soderpalm

STOCKHOLM (Reuters) - The head of niche Swedish telecoms operator Millicom said there could be opportunities to pick up African assets of Kuwait's Zain if that unit were broken up.

"There could be some opportunity around a break-up of Zain Africa's assets. It's too big for one operator, but at a break-up there could be an opportunity," Millicom Chief Executive Mikael Grahne told Reuters in an interview.

Millicom, a Sweden-based group which specialises in emerging markets, has been expanding aggressively although its shares took a tumble after third-quarter results because investors were disappointed by the pace of customer growth.

Zain, the Gulf's third largest telecoms company by market value, halted talks last month to sell African assets to appease potential buyers of a stake in Zain Group.

Grahne declined to say whether Millicom was in talks with Zain. "I can't comment on details. But there is a reasonable likelihood that something will happen around the assets."

Grahne also saw other areas for potential growth activity.

"Then there are a few opportunities in Latin America, there is supposedly a new license coming out in Costa Rica. That is something we are also tracking."

Grahne said there was no basis to talk Millicom could be interested in Colombia's ETB. "No that is absolutely not true. We have zero interest in that asset."