At the start of June, listed Spanish telecom company MasMovil announced that it had received a takeover approach from a consortium of private equity bidders comprising Providence Equity, Cinven and KKR.
MasMovil, which has been busily acquiring smaller competitors such as Lycamobile Espana, Llamaya and Lebara to consolidate its position as the country’s fourth-ranked provider, confirmed that it had been in negotiations with the consortium and gone through confirmatory due diligence.
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Meinrad Spenger, MasMovil |
A formal bid is yet to be put to shareholders, but the company claims the private equity consortium supports its present business strategy and management team. The company statement, signed by chief executive Meinrad Spenger, adds: “Once the offer is authorized by the [national securities market regulator] CNMV, if that is the case, the board of directors believes that this is a transaction beneficial for MasMovil’s shareholders and other stakeholders.”
From €18.7 at the previous day’s close, the share price shot up by 24% to €23.2 on reports that the bidders might offer around €22.5 for a stock that had traded as low as €12.7
