London-based private investment firm Polygon Global Partners, which holds a minor stake in Grupo MASMOVIL, has written an open letter to the National Securities Market Commission (Comision Nacional del Mercado de Valores, CNMV), arguing that the pending takeover bid for the telco badly undervalues the company. Polygon, which holds a less-than-3% stake and is not listed on the telco’s shareholder structure page, hopes to encourage other minority shareholders to follow its lead, in the hope of negotiating a higher takeover price.
The investor asserts: ‘By means of this letter, we would like to emphasise that, having analysed the terms of the prospectus approved in relation to the bid, we consider that the bid fails to comply, in very material aspects, with the legal regime applicable to takeover bids, and seriously damages the interests of the shareholders of MASMOVIL, who have been left unprotected … If the terms of the bid are not amended, we do not intend to accept the bid.’
As previously reported by TeleGeography’s CommsUpdate, in May this year Grupo MASMOVIL (legal name: MASMOVIL IBERCOM) received a takeover bid from Lorca Telecom Bidco, a company indirectly owned by funds advised by Providence, Cinven and KKR. The deal – which was welcomed by the telco’s board of directors, as well as by CEO Meinrad Spenger – values the telco at EUR2.96 billion (USD3.24 billion), or EUR22.50 in cash per share.