Grupo MASMOVIL offer for Yoigo under consideration after Zegona fails to secure funding

26 Apr 2016

UK-based investment vehicle Zegona Communications has reportedly failed to secure the funding needed to finalise its EUR630 million (USD708 million) offer for Spanish cellco Yoigo, which is currently majority owned by Sweden’s Telia Company (formerly TeliaSonera). As previously reported by TeleGeography’s CommsUpdate, last month it was confirmed that Telia Company and Zegona had entered into exclusive talks over a possible deal for Yoigo.

Now, however, local press outlet El Confidencial claims that Grupo MASMOVIL could move in to acquire the cellco; having been beaten out by Zegona in the initial bidding process, it is understood that a EUR550 million offer put forward by the Spanish multi-service operator is now being considered. According to the report, Telia Company must now make a decision whether to accept the lower price proposed by Grupo MASMOVIL or wait and give Zegona additional time to secure the necessary funding to support its higher bid.