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By Inti Landauro and Isla Binnie
MADRID, June 1 (Reuters) - KKR, Cinven and
Providence said on Monday they had made an agreed 2.96 billion
euro ($3.3 billion) bid for Spanish telecoms operator MasMovil
.
In the first European take-private attempt by major buyout
firms since the coronavirus crisis struck, the private equity
trio said holders of 29.56% of MasMovil's stock had already
agreed to sell for 22.50 euros per share.
Shares in MasMovil, which was founded in 1997 and sells
fixed line, mobile and Internet services, hit 22.80 euros at
1015 GMT, around 22% higher than their Friday close and making
them top gainers on Spain's main index..
MasMovil has built up a position in the fiercely competitive
Spanish market in recent years by buying Pepephone and Yoigo and
the bid for it follows Telefonica's deal to merge its
British business with Liberty Global's Virgin Media.
European telecoms operators have struggled to boost profit
growth in a crowded market and in Spain, Euskaltel has
launched a service under the Virgin brand to take on Telefonica,
France's Orange and Britain's Vodafone.
MasMovil Chief Executive Meinrad Spenger said in a statement
that it had signed an agreement with the bidders on a deal which
he said would be "beneficial for the shareholders and other
stakeholders in the company".
It added that the bidders have said they would maintain
continuity in MasMovil's strategy, staff and executive team.
Although the offer price is below a five-year high of 25.52
euros hit in March 2018 and 23.68 late last year, it is well
above the 12.20 euros it reached in March when Spain was
reporting hundreds of coronavirus deaths each day.
The bid for MasMovil is conditional on acceptance from at
least 50% of shareholders, the funds said.
Morgan Stanley, Barclays and BNP Paribas guaranteed
financing for the deal, the offer document said. Morgan Stanley
and Barclays also advised the private equity consortium, a
source close to the deal said.
($1 = 0.8977 euros)
(Reporting by Inti Landauro and Isla Binnie
Editing by Ingrid Melander and Alexander Smith)
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