TeliaSonera Cancels Plans to Sell Spanish Subsidiary
Published on: 2nd Apr 2013
Note -- this news article is more than a year old.
TeliaSonera has announced that it is canceling the process of selling its Spanish mobile network subsidiary after the bids offered failed to meet its expectations.
Yoigo is the smallest mobile network in the country, with a 5.6% market share and is majority owned by Teliasonera, who put it up for sale last September.
The company had been expected to be sold to one of the three main networks in the country for a price estimated in the region of EUR750 million and sparking a modest round of consolidation in the recession hit market. However TeliaSonera has been understood to be holding out for around EUR1 billion for its stake in the company.
"Yoigo has great potential for further development, but as its market strategy does not quite match our other operations, we have been prepared to divest it if we were offered a price which fully reflects its future potential. As this requirement has not been met, we have discontinued the sales process and look forward to continue developing the company," says Per-Arne Blomquist, TeliaSonera CEO.
During 2012, Yoigo's net sales grew 12.5 percent in local currency to the equivalent of SEK 8,382 million. The EBITDA increased 49.3 percent to SEK 627 million.
Teliasonera owns 76.56% of the Spanish mobile network. According to our records, ACS, a construction and services group, has a 17 percent stake, FCC a 3.4 percent stake and Telvent a 3 percent stake.
Yoigo was awarded the country's fourth mobile license in 2000 during the height of the 3G licenses bubble. Known at the time as Xfera the company struggled to launch its network and after several shareholders sold their stakes to Teliasonera, the network launched in June 2006.