TELECOM operator Millicom International Cellular SA announced Tuesday the sale of its Cambodia operations for US$346 million in cash to its in-country partner, Royal Group.

The transaction, which is expected to be completed in late 2009, is comprised of Millicom's 58.4-percent holdings in CamGSM, Royal Telecom International and Cambodia Broadcasting Services, a company statement said.

"We are delighted to reach agreement on the sale of our Cambodian operations to our local partner, the Royal Group," Millicom President and CEO Mikael Grahne said in the statement.

"We are very proud of having played an important role in the development of the leading mobile operator in Cambodia and are very confident of the continued success of Mobitel and its people within the Royal Group," he added.

In the statement, Royal Group Chairman Kith Meng thanked Millicom as "a great partner over the past 14 years in Cambodia".

"Royal Group is acquiring a sound business with significant opportunities before it."