Grupo MASMOVIL, which is currently in talks regarding a EUR2 billion (USD2.4 billion) takeover of regional player Euskaltel Group, will be prohibited from selling on the assets to a third-party for a higher price within two years of the deal closing, Explica reports. The article says that MASMOVIL must also agree to a number of commitments designed to preserve Euskaltel’s Basque identity, including maintaining the current location of its headquarters and preserving its regional brands, which also include R Cable and Telecable.
As previously reported by TeleGeography’s CommsUpdate, MASMOVIL has offered EUR11.17 per share for Euskaltel, which it says represents a 26.8% premium compared to the weighted average price per share during the last six months. Euskaltel’s three largest shareholders, Zegona Communications, Kutxabank and Alba Europe – who collectively hold 52.32% of the company’s shares – have already accepted the takeover proposal. MASMOVIL notes that the offer is conditional on it achieving acceptance from at least 75% (plus one share) of the shareholders, and to obtain all of the relevant competition authorisations and regulatory requirements.