September 19, 2020

MásMóvil leaves the Ibex 35 today after the KKR, Cinven and Providence takeover


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MoreMóvil will remain excluded from the Ibex 35 as of this Monday as a result of the takeover of some 3,000 million euros presented by the KKR, Cinven and Providence funds, which has already been accepted by more than 50% of the operator’s shareholders.

This was decided on September 3 by the Ibex 35 Technical Advisory Committee, taking into account the “special circumstances” that concur in the value of the telecommunications operator, which will make the Madrid index temporarily composed of 34 values.

The adjustment of the mentioned index was held at the close of the session last Friday, the date on which the acceptance period for the offer submitted by the funds through the Lorca Telecom Bidco instrument ended and on which MásMóvil closed at a price of 22.42 euros, compared to 22.5 euros per share in the opa.

Once the result of the offer has been officially published, the Committee will meet on an extraordinary basis on October 7 for its reinclusion or, foreseeably, its replacement by another security, which would become part of the index with effect of the October 19, 2020.

Singular Bank’s head of corporate communication, Victoria Torre, explains that if the takeover bid is accepted by between 50% and 90% of MásMóvil shares, Lorca Telecom would benefit from the exception of Article 11.d of the Royal Decree that The takeover law is in force, which would allow venture capital funds to exclude the company from the listing, prior to a sustained takeover offer at the same price as the initial one (22.5 euros per share).

In addition, it explains that if the takeover bid is accepted by a quorum greater than 90%, the intention of the funds, as expressed in the tender prospectus, is to exclude the shares of MásMóvil from trading through the exercise of the right of forced sale according to the takeover law. In this case, Lorca Telecom could reach 100% of MásMóvil’s capital and exclude the company from the listing.

At the time of the announcement of the transaction, the bidders expressed their intention to exclude the MásMóvil shares from the listing, for which only they would need a simple majority at the shareholders’ meeting, 50% of the capital plus one share.

KKR, Cinven and Providence have indicated that the exclusion of the telecommunications operator from the stock market will allow the company to implement the business plan with a long-term vision without the pressure of fluctuations in the markets.

The takeover launched by KKR, Cinven and Providence by MásMóvil has already been accepted by shares representing a percentage greater than 50% of the company’s capital stock, thus meeting the last of the conditions for the process to go ahead, according to the funds. last Thursday.

This was the only requirement set out in the Prospectus of the takeover bid that remained to be fulfilled, since, since the intention of the funds is to exclude MásMóvil from the listing once the takeover is concluded, it had to be accepted by 50% of the securities of the company, rounded up.

The funds achieved an important step in this process on Wednesday after it was learned that Indumenta Pueri, the patrimonial society of the owners of the Mayoral children’s fashion firm, had changed its mind and would finally go to the offer with its participation, which amounts to around 8 , 2% of the capital.

Thus, all the members of the MásMóvil board of directors have publicly communicated your intention to go to the opa launched by the funds, after a counter-payment has not been presented during the acceptance period or the funds have raised their importance, as has been speculated in the markets.

The fund takeover, which was negotiated amicably with the board of directors and the management team, has, since its announcement, been backed by around 30% of the current shareholders, including 21% in the hands of investors Spaniards and 9% from Providence.

These investors include Onchena, which is currently MásMóvil’s largest shareholder with 13.2% of the capital, as well as Key Wolf and Inveready, who own 5.03% and 2.09% of the company, respectively.

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