Masmovil Ibercom SA (MAS) To Be Taken Private In $3.3 Billion Deal

By Annie Baker ● June 1, 2020
  • Spanish phone company Masmovil Ibercom SA (BME: MAS) will be taken private by three buyout funds as part of a 3 billion euros ($3.3 billion) deal

Spanish phone company Masmovil Ibercom SA (BME: MAS) will be taken private by three buyout funds as part of a 3 billion euros ($3.3 billion) deal, according to Bloomberg. This is one of the largest private equity deals to emerge during the pandemic.

KKR & Co., Cinven Ltd., and Providence Equity Partners LLC offered 22.5 euros per share for the company. And the bid was accepted by Masmovil’s board. It is a 20% premium from the company’s closing share price on Friday.

Masmovil had become the fourth national mobile carrier in Spain since 2016 upon the purchase of Telia AB. And it also gained market share by bundling mobile phone and Internet services.

By taking Masmovil private, it will provide the company with the financial resources needed to challenge rivals like Telefonica, Orange SA, and Vodafone Group Plc.

“A private equity delisting of Masmovil could be seen as progress to eventual consolidation,” said Jefferies analysts led by Jeremy Dellis in a note via Bloomberg before the buyout funds confirmed the bid.

The three bidders all have a presence in the phone market in Spain. For example, Providence is the second-largest shareholder in Masmovil with a 9.2% stake. Cinven owns closely fiber-broadband company Ufinet — which has a business partnership with Masmovil. And KKR has a 40% stake in phone-tower company Telxius.