Orange studies an OPA to stay with Euskaltel | Economy

Orange studies an OPA to stay with Euskaltel | Economy

Orange has hired the bank Credit Suisse to obtain financial advice before a possible takeover on Euskaltel, according to the website published this Thursday TMT Finance. According to that specialized media, which cites sources in the sector, the French telecommunications group is interested in the Basque operator, with which it has had a relationship since 2014 as a provider of telecommunications services. roaming. For the part of Euskaltel, the advice is provided by Citi.

The interest of the French teleco coincides with the offensive of the British fund Zegona to take over the Spanish operator. Zegona, which already has 15% of Euskaltel's shares, announced last October its intention to become the first shareholder (which is currently Kutxabank, with just over 21%). To do so, it launched a partial takeover bid at 7.75 euros per share, with which it was intended to reach 29.9% of the share capital. The cost of this operation was estimated at 206 million euros, but it was paralyzed in December.

However, this same week Zegona expressed again his interest to gain control of Euskaltel. To do so, announced on Monday a capital increase in which it would have attracted almost 113 million euros. The objective is to buy in the market at least 12.5% ​​of the Basque operator, which would position him comfortably as the first shareholder.

Euskaltel reacted last Tuesday making his business plan public until 2022, which increases the gross profit of the group by 30%. This plan, approved last October, contemplates increasing rewards for its shareholders thanks to the growth of the group, which in its traditional markets – Basque Country, Galicia and Asturias – aims to add in 2019 Catalonia, Navarra, Cantabria, La Rioja and the province of León . Currently, Euskaltel has about 800,000 clients. A figure that would reinforce Orange's position in Spain, one of its main markets outside of France.


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