Just a few days after it had been confirmed that alternative Spanish operator Jazz Telecom (Jazztel) had begun initial talks with TeliaSonera over a possible offer for the latter’s local mobile unit Yoigo, Jazztel itself has now become the subject of an acquisition bid.
According to Reuters, France-based Orange Group has made an offer to buy 100% of Jazztel’s shares at a price of EUR13 (USD16.8) per share in cash, a figure it estimated represented a 34% premium over the operator’s average closing price in the last 30 days. With the deal effectively valuing Jazztel at EUR3.4 billion, it has been noted that Orange Group requires at least 50.01% of shareholders to accept its offer, though it has already secured an agreement to sell from the Spanish telco’s main shareholder, Leopoldo Fernandez Pujals, whole holds 14.5% of the stock.
Regulatory approval will now be sought for the deal, while it is also understood that the offer from Orange Group is conditional on Jazztel not moving forward with the aforementioned potential purchase of Yoigo.
Commenting on the proposed purchase, Orange Group CEO Stephane Richard was cited as saying: ‘We are doing this deal to accelerate our growth in Spain, particularly in fixed-mobile convergent offers … The new company will be the incontestable number two in fixed services and third in mobile behind Vodafone, but we think we’ll be able to take second-place pretty quickly.’