EC approves MasMovil, Orange deal; TeliaSonera revives Yoigo sale?

20 Oct 2015

Swedish telecoms group TeliaSonera is resurrecting plans to sell its Spanish wireless unit Yoigo, in a deal that could fetch up to EUR500 million (USD567 million), Bloomberg reports, citing people with knowledge of the matter. TeliaSonera abandoned the divestment of its 77% stake in Yoigo in 2012, after offers for the cellco fell short of its expectations, but the Stockholm-based company is said to be reconsidering the sale of the operator after receiving interest from local telecoms operator MasMovil Ibercom and a number of unspecified private equity firms. According to the unnamed sources, one or more of the buyout firms may bid alone, or by teaming up with MasMovil, adding that no final decision has been made and TeliaSonera could still decide against a sale.

In a separate development, the European Commission (EC) has formally approved MasMovil’s deal with Orange Group to acquire fixed broadband assets from Jazztel on favourable terms. The deal was first announced in August and is part of the remedies set by the EC for Orange’s takeover of Jazztel. The transaction involves the divestment of an independent fibre-optic network covering approximately 720,000 premises in 13 districts of Spain’s five largest cities. In addition, MasMovil will be granted wholesale access to Jazztel’s national ADSL network for an initial four-year period, extendable for a further four years.