Spain’s Masmovil launches friendly takeover bid for Euskaltel

0
80
imageStock Markets8 hours ago (Mar 28, 2021 22:00)

© Reuters.

MADRID (Reuters) – Spain’s Masmovil announced on Sunday a friendly takeover bid for rival telecoms firm Euskaltel worth nearly 2 billion euros ($2.4 billion).

Masmovil said in a statement to Spain’s CNMV stock market supervisor that it had the agreement of shareholders who hold 52.32% of the capital for the bid, which would see it pay 11.17 euros per share in cash.

That represents a premium of 26.8% on the average price of the shares over the past six months, Masmovil said. The offer is a 16.48% premium compared with Friday’s closing price.

“Therefore, the maximum amount to be disbursed by the Masmovil group is close to 2 billion euros,” the company said.

Masmovil said in the statement that its offer was conditional on achieving the acceptance of at least 75% plus one share of the capital and obtaining all appropriate competition and regulatory authorisations.

“Masmovil and Euskaltel together form a solid and complementary industrial project,” it said.

“The operation will accelerate the investments in infrastructures that are necessary in the current context and that will benefit Spanish consumers,” Masmovil said, adding it would maintain the Euskaltel, R, Telecable and Virgin brands.

It also said, without giving details, that it would maintain employment at those companies.

In documents it sent to the CNMV, Masmovil said it approached the board of Euskaltel on March 15 with an offer to buy the company. The board of directors of Euskaltel “agreed on 17 March 2021 to consider the offer friendly and attractive,” the document said.

On Sunday, the document said, Masmovil and Euskaltel entered into an agreement in which they formalised the various arrangements reached in relation to the takeover bid.

Euskaltel declined to comment.

($1 = 0.8481 euros)

Spain’s Masmovil launches friendly takeover bid for Euskaltel

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

LEAVE A REPLY

Please enter your comment!
Please enter your name here