Grupo MASMOVIL offers EUR2.1bn for Euskaltel

29 Mar 2021

Spanish alternative operator Grupo MASMOVIL has offered EUR2.1 billion (USD2.5 billion) for regional player Euskaltel, in what Bloomberg describes as ‘a friendly deal’. As per the report, MASMOVIL is offering EUR11.17 per share in cash for the smaller company – which marks a 16% premium to the telco’s closing share price on Friday 26 March. It is understood that MASMOVIL already has financing in place to fund the takeover, including bank debt. The news agency suggests that Euskaltel’s three largest shareholders – who own a combined 52% of the company – have already accepted the deal.

Meanwhile, a regulatory filing issued by Euskaltel has confirmed that it has indeed received a takeover bid from Kaixo Telecom, a wholly owned subsidiary of Masmovil Ibercom. In response to the approach, Euskaltel’s Board of Directors has appointed Citigroup Global Markets Europe as its financial advisor.

TeleGeography notes that Euskaltel Group is currently the leading alternative telecoms operator in Northern Spain. The present incarnation of the group was formed when Euskaltel (which originally served the Basque Autonomous Community) acquired R Cable (Galicia, November 2015) and Telecable (Asturias, July 2017).

Spain, Euskaltel Group (incl. R Cable and Telecable), Grupo MASMOVIL (incl. Yoigo)