By Barbara Kollmeyer, MarketWatch
Shares in MasMovil Ibercom SA climbed 22% on Monday after the Spanish telecom said it has received a $3.3 billion (€2.96 billion euro) buyout offer from a private-equity consortium.
In a statement , Meinrad Spenger, chief executive of MasMovil said the offer from Lorca Telecom, a consortium comprising buyout private-equity firms Providence Equity, Cinven Capital Management and Kohlberg Kravis Roberts & Co. would be “beneficial for the shareholders and other stakeholders in the company.”
Should the offer be successful, MasMovil’s strategy and business plan, along with employees and management team will remain the same, said Spenger. The company owns Yoigo, Pepephone, Llamaya y Lebara brands.
In annual results released in February before Spain locked down for the pandemic, MasMovil reported total revenue of €1.7 billion, and 8.9 million customers for the group overall, of which 1.5M are fixed broadband and 7.4 million are mobile.
According to Moody’s Investors Service, MasMovil is the fourth biggest operator in Spain, competing with France’s Orange /zigman2/quotes/201008076/delayed FR:ORA -0.27% , Telefonica’s Movistar /zigman2/quotes/207034643/composite TEF -1.57% /zigman2/quotes/200416613/delayed ES:TEF -0.83% and U.K.-based Vodafone /zigman2/quotes/202862751/composite VOD -0.39% /zigman2/quotes/202484985/delayed UK:VOD -0.91% .