The Spanish telecommunication Euskaltel was founded in 1995. By March 2021, the company has 739 employees.
History
2021: Masmovil bought Euskaltel for 2.1 billion euros
At the end of March 2021, the Spanish telecom operator Masmovil announced the purchase of rival Euskaltel. The deal is estimated at 2.1 billion euros.
Masmovil will pay 11.17 euros per share with its own funds. The three largest shareholders of Euskaltel (Zegona, Kutxabank and Alba Europe), which together own 52%, have already approved the sale of the telecom operator. The deal with Euskaltel will be the largest for Masmovil.
In early 2021, Euskaltel sought to go beyond its main market in northern Spain, and also worked on a deal to sell a stake in its fixed broadband division.
Masmovil and Euskaltel together form a solid and complementary industrial project, "Masmovil said in a statement. The takeover, according to the company, will allow it "to strengthen and accelerate its growth and continue to transform the telecommunications sector in Spain. |
Overall, we believe there is a high likelihood of a deal being made as Zegona expects the tender process to take (about) six months given any possible delays by regulators and/or competing proposals, Canaccord Genuity noted. |
MasMovil said it will retain the brands Euskaltel, R, Telecable and Virgin, as well as retain jobs in these companies.
Amid news of the deal on March 28, 2021, Euskaltel shares rose 16.6% to 11.18 euros per share after rising 17.4% during the year, which is the largest increase in history. In general, in 2021, the company's shares grew by 28%.
Completion of the Euskaltel and Masmovil deal depends on regulatory approval as well as acceptance of 75% plus one share of equity.[1][2]