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MásMóvil has launched a takeover bid for Euskaltel.
The offer launched by MásMóvil values the company's shares at 11.17 euros, which represents a premium of 26.8% over the weighted average share price over the last six months. This price per share represents a valuation of the company of almost 2,000 million euros.
The offer, as communicated by the company, already has an essential acceptance commitment from its main shareholders, which represent 52.32% of the capital.
The offer has been communicated this Sunday to the CNMV, according to the telecom in a press release. The fourth operator, which was excluded from the stock market after being taken over by Cinven, KKR, and Providence funds, explains in a statement that it seeks to make an exponential leap in services and solutions for residential and business customers, especially in the north of the country, where Euskaltel has 840,000 customers.
The offer is conditional, according to MásMóvil in a statement, on the acceptance of at least 75% plus one share of the capital and on obtaining all the appropriate competition and regulatory authorizations described in the announcement.
"Although the offer is not a delisting tender offer, the Offering Company intends to promote the delisting of Euskaltel's shares from the stock exchanges," the text adds.
For the time being, it already has the support of 52.32% of the capital to the offer. Its main shareholders, Zegona Limited (through its parent company, Zegona Communications plc), Kutxabank, and Corporación Financiera Alba have committed to accept the offer through irrevocable agreements reached with MásMóvil.
Nearly 14 million lines and revenues of 2.7 billion euros
The addition of MásMóvil and Euskaltel, if the transaction goes ahead, will create a group with nearly 14 million lines, estimated revenues of approximately 2.7 billion euros, 26 million homes connected to fiber, and more than 1,500 employees.
The deal comes after Euskaltel launched the Virgin brand in 2020 as part of its strategy to reach the domestic market.
In recent months, the telecommunications sector has been buzzing with merger talk given the hyper-competitive market, although reports pointed to a move between MásMóvil and Vodafone, something both operators had repeatedly denied.