MASMOVIL requests 700MHz auction delay to finalise Euskaltel takeover

20 May 2021

Spanish alternative operator Grupo MASMOVIL, which is currently in talks regarding a EUR2 billion (USD2.4 billion) acquisition of regional player Euskaltel Group, has reportedly asked the regulatory authorities to postpone the planned 700MHz auction until it receives the green light for its takeover. According to business daily Expansion, the telco has filed its request with the Ministry of Economic Affairs and Digital Transformation (Ministerio de Asuntos Economicos y Transformacion Digital) and the National Commission for Markets and Competition (Comision Nacional de los Mercados y la Competencia, CNMC). As per the report, MASMOVIL has argued that it wants to coordinate its bidding strategy with Euskaltel – without indulging in anticompetitive practices.

As previously reported by TeleGeography’s CommsUpdate, in April this year MASMOVIL offered EUR11.17 per share for Euskaltel, which it says represented 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.