KKR, Cinven, Providence launch EUR 3 bln bid to take over Masmovil

News General Spain 1 JUN 2020 Updated: 1 JUN 2020
KKR, Cinven, Providence launch EUR 3 bln bid to take over Masmovil

Three buyout funds have launched a joint bid to take over Spanish telecommunications provider Masmovil, the country’s fourth largest network operator, according to a statement filed with securities market regulator CNMV. A consortium called Lorca Telecom BidCo made up of investment firms KKR, Cinven and existing shareholder Providence has offered EUR 22.50 per Masmovil share, some 20 percent more than their current price and equivalent to an overall business value of just under EUR 3 billion. The takeover bid is mainly aimed at minority investors, which account for around 60 percent of the capital, and is conditional on acceptance from at least 50 percent of shareholders, said the consortium.

According to an earlier report in El Confidencial, the buyout funds are confident of reaching an agreement with the company’s management, led by CEO Meinrad Spenger and vice chairman Jose Maria Echarri and could increase their offer to EUR 26 a share, raising Masmovil’s value to EUR 3.5 billion and then delisting the company. Spenger subsequently released a statement confirming that Masmovil had met its bidders and signed an agreement regarding the offer, which would be “beneficial for the shareholders and other stakeholders in the company”. If successful, the bidders have also committed to maintaining continuity in the company’s strategy, staff and management team, he said.

Two sources quoted by Reuters added that Providence, KKR and Cinven will have equal shares of the operator if the bid goes through. The deal would also mark the first attempt by private equity investors to buy a publicly listed company in Europe in a take-private deal since the start of the coronavirus crisis.

Masmovil has been the main disruptor of Spain’s telecommunications market since it became the country’s fourth largest network operator when it acquired the operators Yoigo and Pepephone in 2016, followed by smaller MVNOs including Llamaya and Lebara, among others. It now has well over 9 million customers and an FTTH footprint of over 24 million thanks in part to co-investment agreements with Orange and Vodafone and bitstream agreements with third parties.

Updates
1 JUN 2020 - Adds official confirmation of bid and Masmovil statement.

Categories:

General

Companies:

Lebara,  Yoigo,  Masmovil,  LlamaYa

Countries:

Spain

Tags:

Shareholders & subsidiaries, M&A buyouts & divestments

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