Másmovil completes the purchase of Euskatel and takes over almost 98% of the Basque operator




Resounding success of the takeover of More mobile about Euskaltel. The operator who runs Meinrad Spenger It has acquired 97.67% of the capital stock of the Basque operator for some 2,000 million euros, at a price per share of 11 euros, as announced by the teleco in a statement. This leaves the way open to a rapid delisting from the Stock Market when they manage to buy 100% of the capital stock, in the same way as the three investment funds that own Másmovil (KKR, Cinven and Providence) did when they bought the company recently. more than a year

Last week the acceptance period of the takeover bid closed, and Másmovil already had tied the ‘yes’ of 52.32% of the share capital formed by its main shareholders: the British fund Zegona Communications (21.43%), Kutxabank (19.88%) and Corporación Financiera Alba (11%). All this, conditional on achieving the acceptance of 75% of the shareholders. Something they would have more than achieved.

In this way, Másmovil takes a giant step to strengthen its status as the fourth operator in the country with the ambition of climbing a few more steps and approaching Telefónica. In addition, this opens the door to a repeat of what happened with Másmovil in 2020 when its three proprietary investment funds (KKR, Cinven and Providence) took over the teleco with another takeover bid and subsequently excluded it from the listing.

The integration will take place in the coming months, after an operation that has also received the favorable opinion of the Euskatel board of directors headed by its CEO José Miguel García (former CEO of Jazztel). It will be financed with debt, which will involve the refinancing of Euskatel’s liabilities and will raise the bill for the telco that owns Yoigo up tos 3,550 million euros. In addition to adding the 67 million in which the transaction costs of the OPA have been encrypted. An amount contributed by a syndicate of banks, among which are BNP Paribas, Banco Santander or Deutsche Bank, among others.

The main reluctance has come from the hand of the union representation that in the opinion issued, after the takeover bid was authorized by the CNMV a month ago, they warned that they would monitor compliance with the commitments acquired on the operator’s roots in the Basque Country, Galicia and Asturias. At the same time, they showed their fear that brands such as R Cable or Telecable would disappear. In this sense, market sources consulted have been insisting – also the same MásMovil – that there are no overlaps or cannibalization between the different brands of the new group (Yoigo, Euskaltel, Virgin Telco, Telecable, R, Pepephone, etc … .).

The company has, on different occasions, maintained its will to maintain the registered office and tax address of Euskaltel in the Basque Country, in addition to maintaining employment and making certain investments in fiber or 5G.

In this sense, they have conditioned their support for the operation on taking into account some proposals addressed to Másmovil, such as that the labor guarantees be extended “as long as possible” and that it is specified that This commitment will apply to all the territories in which Euskaltel is present (Basque Country, Asturias and Galicia). They have also requested “greater detail of the Industrial Plan and the planned synergies”, as well as that the eventual revision of the 2021 objectives does not affect the variable part of the remuneration or that the Incentive Plan be revised.

Based on the percentage achieved, the sources cited by Europa Press have estimated that not only the relevant shareholders have attended the takeover, but in the case of Zegona would have pocketed 421 million of euros for 390 million Kutxabank and another 216 million Alba Financial Corporation. Similarly, the sources consulted have assumed that Banking (4.48%) It has also sold its stake for about 88 million euros, as well as other shareholders such as NN Group (6.85%) that will enter 134.7 million euros or JP Morgan (5%) that would have pocketed 109 million eruos. Other active funds have also benefited in recent weeks, such as the French Syquant, which would have gathered a significant stake in Euskaltel, which it would have sold for about 88 million.

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