Emergence of the fourth telecom player in Spain

22/03/2017

Másmóvil has become the fourth convergent telecom player in the Spanish market after the acquisition of Yoigo and Pepephone last year. Societe Generale played a key financing role in this transformational transaction that became the largest Telecom deal in Iberia in 2016. The resulting company will boost competition in Spain and benefit consumer segments that are looking for very competitive prices.

"Together we are more", explained in Twitter Meinrad Spenger, CEO of MásMóvil, after announcing the acquisition of Yoigo, the fourth national mobile operator in Spain.

A deal that together with the previous purchase of Pepephone, the second largest independent Mobile Virtual Network Operator (MVNE), consolidates Másmóvil Ibercom as the fourth telecom convergent operator in Spain after Telefónica, Orange and Vodafone. The market has now a new nation-wide convergent telecom operator with a competitive offering. 

 

This transformational transaction for Másmóvil, the most important one it has closed since it was created, implied an aggregate enterprise value of 770 million euros, allowing the company to acquire the critical mass to increase its client base, invest in new generation networks, develop new businesses and achieve significant growth perspectives in the context of a very positive market in Spain.

“With these transactions MásMóvil reaches a solid critical mass and grants it access to infrastructure that allows it to become the truly fourth convergent telco player in Spain, to the benefit of its clients, shareholders and employees” commented Javier Marin, Senior VP Corporate Finance & Investor Relations for MásMóvil.

More than four million mobile clients, 70.000 fixed customers, 1.1 billion euros in revenues and over 100 million euros in Ebitda are just some of the figures that stand out when one analyzes the resulting group. This is a transaction which, thanks to the costs savings potentially achievable, consolidates the company as a solid competitor in the Spanish telecom market, while it contributes to the European Commission’s desire to boost competition by having 4 telecom operators in each country.

To contribute to make this transaction possible, Societe Generale played a key role by financing the two acquisitions and finding the adequate structuring and successful placement of this transaction in the market. In order to finance the acquisition Másmóvil Ibercom raised 800 million euros, split among senior debt (386 millon), junior facilities (96 million), convertible notes (165 million) and a capital increase (160 million). Societe Generale acted as underwriter, MLA and Bookrunner as well as sole Junior Lender on behalf of Providence Equity Partners, who participated in the junior facilities, convertible notes and capital increase, and who is now the first shareholder of Másmóvil. The financing was syndicated to 16 national and international banks.

“We are very proud to be one of the lead banks that have contributed to make possible this strategic acquisition of Másmóvil. Our knowledge of the Spanish market and our ability as a bank to provide tailor-made financing solutions to our clients in a limited timeframe, have contributed to make this transformational transaction possible”, explains Arturo Alonso, General Manager, Head of Global Finance in Spain and Portugal.