- Operation.KKR, Cinven and Providence launch a takeover bid
- Interview.Meinrad Spenger, the Austrian recipe for MásMóvil
The telecommunications sector stands out among all other business activities due to the size of its operations during the state of alarm: the merger of the Telefónica subsidiary in the United Kingdom and the commercial launch of Euskaltel for the entire Spanish territory, it is adds a millionaire takeover bid for MásMóvil, a company valued at almost 3,000 million euros, to which should be added the ability to respond to a debt of more than 1,800 million; altogether, more than 4.8 billion in the midst of a health crisis. The three venture capital funds KKR, Cinven and Providence formalized yesterday before the National Securities Market Commission (CNMV) the operation, to be carried out by the company Lorca Telecom BidCo, a Madrid-based consortium in which each fund controls 33%.
However, both KKR and Providence come from the US , while Cinven is originally from the UK . During the state of alarm, the Government included the telecommunications sector among the essential activities and also decided "to suspend the liberalization regime of certain foreign direct investments in Spain for reasons of public security, public order and public health in the main sectors strategic . "
Consulted about it, sources close to the operation believe that it would have seen extraordinary good on the part of the Executive if it were finally necessary, although they provide the green light without the need for such a pronouncement, since it is the fourth operator in the market and not the main one company in a key area for the Spanish economy. In the environment of the funds, they do not see any risks for the takeover bid either, although they admit that the regulation is so recent that they will have to ask the administrations about it and, if necessary, wait for the verdict of the Council of Ministers on a previous report from the Foreign Investment Board.
This is the novel shield of the Government
The new article 7 bis that emerged during the health crisis to update the 2003 law "was based on the extraordinary and urgent need to introduce prior authorization mechanisms for certain foreign investments, in order to avoid the threat of acquisition operations of Spanish companies carried out by foreign investors taking advantage of the decrease in value, "was stated in the Official State Gazette (BOE). As stated in the documentation sent from the OPA, KKR, Cinven and Providence will ask Industry if they need this "authorization provided for in article 7 bis" to complete the operation.
Friendly takeover bid with much favor
The takeover bid is supported by endorsements from Barclays, BNP Paribas and Morgan Stanley, and it is also friendly, with the "positive opinion" of the MásMóvil board of directors. Some large shareholders have committed, among other points, to accept the offer and sell 38,938,643 shares, which represent 29.56% of the share capital .
Among the favorable shareholders are Onchena (13.20% of the capital), a holding company linked to the Ybarra family; Key Wolf (5.03%), from which former CEO of MásMóvil Ibercom José Eulalio Poza operates; Inveready (2.09%), with Josep Maria Echarri in front; and Styria (0.08%). In addition, Providence (9.15%) is currently one of the main shareholders of the operator. In summary, the aforementioned 29.56% of capital is already gathered when it is required to exceed 50% of the shareholding. Norges Bank, BlackRock and the Domínguez family, owners of the Mayoral textile firm, also participate in this, as well as the CEO, Meinrad Spenger, which gathers approximately 0.9%. The fact that 52.7% of the capital is in free float , that is, in the market, gives wings to the operation, which attracts shareholders with a premium of 20.2%.
Record 23.82% rise in the Ibex
The takeover bid for MásMóvil values the company at 2,963.57 million and presents 22.50 euros in cash for each security, which improves the price of the securities by that 20.2% last Friday, to 18.72 euros at the end of session. Yesterday, the telecommunications company ran wild on the Ibex and signed a record day in which it rose 23.82% , reaching 21.18 euros per share. The shares of the company led by Spenger did not exceed the barrier of 20 euros since last March, having dropped to around 12 euros in alarm.
MásMóvil was born from the conditions of the competition authorities to the acquisition of Jazztel by Orange, some remedies that ended up originating the fourth operator in the Spanish market, after Telefónica, Orange and Vodafone. Since 2016, the thriving emphttp: //elmundo.editor.internet.int/noticia/parser/section/economia/empresas? DataDragFirstLevel = true # resa has expanded its perimeter with different purchases: Pepephone by 158 million, Yoigo by 612 million, Call for 41.7 million and Lebara for 55. In fact, the yellow operator stands out as the company in the telecommunications sector that has obtained the most lines from its rivals in recent years.
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