11 May 2021
MasMovil has made a “friendly” takeover bid for rival Spanish telecom firm Euskaltel worth nearly €2bn, in a move destined to shake up the country’s competitive sector.
The former said it had already secured the agreement of shareholders who hold 52.32% of Euskaltel’s share capital. It is offering €11.17 per share in cash.
“MasMovil and Euskaltel together form a solid and complementary industrial project,” MasMovil said in a statement, adding that the takeover would allow it to “reinforce and boost its growth and continue transforming the telecommunications sector in Spain.”
In addition, MasMovil said its offer was conditional on achieving the acceptance of at least 75% of the share capital and obtaining all appropriate competition and regulatory authorisations. The buyer added that it would maintain the Euskaltel, R, Telecable and Virgin brands and maintain employment at those companies. MasMovil said acquiring Euskaltel would reinforce its position as Spain’s fourth-largest telecoms company. Euskaltel declined to comment.