July 10, 2020

KKR and Cinven prepare a friendly offer to enter the teleco


Madrid

Updated:

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The waters go down revolts in the telecommunications sector, to which the de-escalation has given a new life. The movements in this market follow one another and augur deeper changes: at the beginning of the month, Telefónica surprised with an agreement with Liberty Global to merge its affiliates in the United Kingdom; and Euskatel was moving a piece to challenge the big telcos nationwide with Virgin Telco. Well, tonight, El Confidencial was advancing the interest of investment funds KKR and Cinven for launching a takeover bid (takeover bid) on the Spanish telco MásMóvil (Másmóvil, Yoigo, Pepephone, Llamaya and Hits Mobile) offering more than 23 euros per share and valuing the company at around 3,000 million euros. A movement in which they could count on the support of Blackstone or Providence, the latter shareholder in turn of the operator. Asked by official company sources, they have declined to comment.

According to these information, the takeover bid is friendly, since it would have the approval of the board of directors of the firm. It would also be directed mainly minority shareholderss, which control about 60% of the share capital. The objective would be to take control of more than 75% of the shares, along with other relevant shareholders such as Providence or the Ybarra Caneaga family (which owns 13.2% of the capital through its investment holding Onchena), and proceed to its exclusion from the Stock Market.

KKR and Másmóvil, old acquaintances

The interest of the American fund KKR and the British Cinven is not new and they had already started rapprochement movements weeks ago, paralyzed by the Covid-19 health crisis. MoreMobile craves an appetizing piece For some time now, foreign investment funds, which value their growth in the number of clients, reached 1.5 million clients in broadband in just over three years.

But among the suitors of the Spanish, the American KKR is the most prominent since a year ago it closed an agreement with the Spanish operator for the purchase of a minority stake in the Portuguese Cabonitel (Nowe and Oni). It is the second telephony holding company in the neighboring country and for which the company led by Meirnrad Spenger would pay 15 million euros. What has represented a step forward in internationalization.

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