PARIS (Agefi-Dow Jones)–The telecommunications operators Orange and Masmovil announced on Saturday that they have signed an agreement to combine their activities in Spain, the result of exclusive negotiations started in this direction in early March 2022.
This combination will give rise to a joint venture controlled equally by Orange and Masmovil, whose enterprise value would reach 18.6 billion euros, with an enterprise value of 7.8 billion euros retained for Orange Spain. The new group would achieve a turnover of more than 7.5 billion euros and a restated adjusted gross operating surplus (Ebitdaal) of more than 2.2 billion euros.
“This transaction is subject to the approval of the competition authorities and the competent administrative authorities. It is expected to be finalized during the second half of 2023 at the latest,” the two parties said in a press release.
This merger should generate synergies of an estimated annual amount of more than 450 million euros from the fourth year following the completion of the transaction, added Orange and Masmovil.
In addition, the agreement between the parties will include the right for both parties to launch an IPO of the future joint venture under certain conditions and the option for Orange to take control and thus consolidate the combined entity in the event of listing. Orange may not, however, be forced to sell its stake or exercise its option.
-Dimitri Delmond, Agefi-Dow Jones; +33 (0)1 41 27 47 31; [email protected] ed: VLV
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July 25, 2022 00:41 ET (04:41 GMT)