Spain's Masmovil Buys Yoigo from Telia
Published on: 23rd Jun 2016
Note -- this news article is more than a year old.
After years of failed attempts, Sweden's Telia has finally sold its majority stake in Spain's Yoigo to local telco, Masmovil.
The transaction price is based on an enterprise value for Yoigo of EUR 625 million, of which Telia Company's 76.6 percent share corresponds to EUR 479 million.
The divestment is estimated to generate a capital gain of more than SEK 4 billion and, following debt adjustments, the transaction is expected to reduce net debt for Telia Company by approximately SEK 6 billion.
"The divestment of Yoigo is an important milestone in our ambition to increase focus on our operations in the Nordics and Baltics. I am happy that we have an agreement with Masmovil, who will be able to leverage a small but great and agile team into a combined unit, creating an even stronger challenger in the Spanish market," says Johan Dennelind, Telia Company's President and CEO.
Yoigo has approximately 3.3 million subscriptions and a market share of 7 percent in Spain. Publicly listed in Spain since 2012, Masmovil serves close to 1 million residential customers and 26,000 enterprises and is interconnected to more than 150 operators.
As part of the transaction, the minority owners ACS (17%), FCC (3.4%) and Abengoa (3%) will continue to have exposure to the combined entity.
The deal is subject to approval from the Spanish competition authorities and is expected to close during the third quarter of 2016.