👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

Private equity bid taken up by 86% of MasMovil shareholders

Published 09/17/2020, 08:43 AM
Updated 09/17/2020, 08:45 AM
© Reuters. FILE PHOTO: A balloon with the logo of  Masmovil is seen during its bourse debut in Madrid
ORAN
-
TEF
-
KKR
-
SXKP
-

By Isla Binnie

MADRID (Reuters) - A large majority of shareholders in Spanish telecoms firm MasMovil have accepted a private equity bid to take it private in the first major deal of its kind since the coronavirus pandemic struck, the stock market regulator said on Thursday.

United States-based funds KKR (N:KKR), Providence and Cinven had secured support from the company's board and owners of almost 30% of its stock before announcing a bid worth 3 billion euros ($3.54 billion) in June.

Holders of 86.4% of the company tendered their shares for the 22.50 euros each on offer, the bourse filing said.

Under Spanish takeover law, the new owners still need to call a shareholder meeting to approve the firm's delisting.

MasMovil's new owners aim to take the company off the Spanish stock market, where it has been trading just below the offer price since early August, having soared above the bid level when the buyers showed their hand.

The stock has racked up an accumulated 10% rise so far this year, a polar opposite performance to the 17% drop for the sector benchmark index (SXKP).

Some shareholders had said the offer undervalued a company that has grown quickly by acquiring low-cost brands to grab market share from stalwarts Telefonica (MC:TEF) and Orange (PA:ORAN).

European telecoms executives often champion a reduction in the number of companies operating in the industry, through mergers and acquisitions, to help share the high costs of investing in infrastructure to carry next-generation 5G internet.

© Reuters. FILE PHOTO: A balloon with the logo of  Masmovil is seen during its bourse debut in Madrid

($1 = 0.8472 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.