Niel’s Atlas Luxco Sarl is offering $24 a share in cash, a premium of 1.8pc compared to Millicom’s May 22 closing price in the US and 1.2pc in Sweden, it said in a statement yesterday.

May 22 was the last day of trading before a Bloomberg News report about a potential public offer for the company, which the company referred to as “market speculation” in the statement.

Since then, Millicom’s US-listed shares have risen 4.1pc, closing at $24.55 on Friday.

The offer is fully financed through funds available to Atlas and financing provided by banks.

Atlas, already the top shareholder of Millicom, has been exploring a bid to buy out other shareholders for months, Bloomberg News previously reported.

Luxembourg-based Millicom’s board hasn’t made a formal recommendation regarding the offers. Representatives for Millicom did not immediately respond to a request for comment.

“Atlas wants to continue expanding the reach and capacity of Millicom’s networks and distribution capabilities to grow its customer base and better leverage its comprehensive telecom expertise,” Atlas said in the statement.

Millicom, which provides fixed and mobile telecom services under the Tigo brand to more than 50 million subscribers in Latin America, was in talks last year on a possible sale to Apollo Global Management and Claure Group. Niel took a stake in the company amid those discussions.

Atlas’ proposed deal is a sign Niel sees Millicom’s cash-generation potential as undervalued, said BI analyst Matthew Bloxham, who compared it to billionaire Patrick Drahi’s investment in BT.

“These wealthy private investors made their money in the sector, suggesting they have a high degree of confidence in their ability make an attractive return on the investments,” he said.

Millicom’s Latin American operations have shown a mixed performance in recent years, he added, reflecting competition in its key markets, a volatile economy and demand.

“That’s been a key factor in keeping valuation multiples subdued,” he said.

The company reported sales last year of $5.6bn, according to its website.