Buyout funds launch $3bn bid for Spain’s MasMovil

2 June, 2020 12:00 AM printer

MADRID: Buyout funds KKR (KKR.N), Cinven and Providence have mounted a friendly bid to pay up to 2.96 billion euros ($3.30 billion) for Spain’s MasMovil MAS.MC, the companies said on Monday, sending shares in the telecom operator soaring more than 20%.

It is the first attempt by heavyweight private equity investors to buy a publicly listed company in Europe in a so-called take-private deal since the coronavirus crisis brought most transactions in the region to a halt, report agencies.

The funds offered 22.50 euros per MasMovil share and said shareholders with 29.56% had already committed to sell at a price that represents a 20% premium over its price at the end of trading on recently.

MasMovil, founded in 1997, sells fixed line, mobile and Internet services. It has grown through acquisitions, bolstering its claim to the fiercely competitive Spanish market, snapping up lower-cost brands Pepephone and Yoigo in 2016.