Madrid's MasMovil launches friendly takeover bid for regional rival Euskaltel

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 Madrid's MasMovil launches friendly takeover bid for regional rival Euskaltel

MasMovil, the Madrid-based Spanish telecommunication company, had issued a statement on Sunday unveiling a friendly acquisition bid for regional rival Euskaltel which could value the 26-year-old smaller MasMovil rival at around €2 billion ($2.4 billion).

In point of fact, the MasMovil Ibercom SA, a Spanish telecom giant, said in a statement to Spain’s stock market supervisor, CNMV, that it had already reached an accord with a large chunk of Euskaltel shareholders holding roughly 52.32 per cent stake in the company, while under the financial terms of the agreement, Euskaltel shareholders would receive €11.17 per share in cash for each Euskaltel share they were holding, representing a premium of 26.8 per cent based on the average Euskaltel shares’ prices over the past six months, added MasMovil.

Nevertheless, MasMovil’s latest offer to takeover Euskaltel illustrates a 16.48 per cent premium to Euskaltel’s Friday’s closing price.

MasMovil to purchase Euskaltel for €2 billion

On top of that, adding that its takeover offer was subject to conditions to achieve the acceptance of at least seventy-five per cent plus one share of Euskaltel capitals alongside other regulatory approvals, MasMovil said in the statement, “Therefore, the maximum amount to be disbursed by the Masmovil group is close to 2 billion euros…MasMovil and Euskaltel together form a solid and complementary industrial project.

The operation will accelerate the investments in infrastructures that are necessary in the current context and that will benefit Spanish consumers. Besides, adding that the Euskaltel takeover deal would not impact employments at its smaller regional rival, MasMovil added on its Sunday’s statement that it would continue to maintain R, Telecable and Virgin brands alongside Euskaltel.