Spanish MVNO and fixed player Euskaltel’s three largest shareholders pledged to sell-up as part of a €2 billion takeover offer from rival Masmovil, as the companies entered formal negotiations on the deal.
In a statement today (29 March) Euskaltel’s board said it had agreed to “negotiate in good faith” on the bid, which was filed with Spanish stock market regulator Comision Nacional del Mercado de Valores (CNMV) yesterday.
The offer is being made by Masmovil subsidiary Kaixo Telecom.
Euskaltel is primarily focused on Northern Spain, supplying fixed and TV services alongside mobile through an MVNO agreement with Orange Spain. It operates under its primary brand in addition to R Cable, Telecable and Virgin.
In its statement, the Masmovil noted the tie-up would consolidate its position in the market and allow it to “expand and complement its geographical presence”, pledging the combination of the companies would help accelerate investment in 5G and fibre across the country.
The takeover is subject to Masmovil being able to secure at least “75 per cent plus one” shares and gaining regulatory approval.
Euskaltel’s three largest shareholders Zegona Communications, Kutxabank and investment company Alba, which hold a combined stake of 52 per cent, have publicly backed the bid and pledged to sell at the offer price.
The MVNO was reportedly the target of interest from Masmovil rival Orange in 2019, though the latter denied speculation it was poised to launch a takeover attempt.