Press release: Orange and MASMOVIL complete transaction to form the leading operator in Spain in terms of customers
26 Marzo 2024 - 2:02PM
Press release: Orange and MASMOVIL complete transaction to form the
leading operator in Spain in terms of customers
Press ReleaseParis and
Madrid, 26 March 2024
Orange and MASMOVIL complete transaction to form the
leading operator in Spain in terms of customers
- The 50:50 Joint Venture between Orange Spain and MASMOVIL
starts operations from today and will bring substantial benefits to
Spanish consumers and enterprises.
- The Joint Venture is expected to generate synergies of more
than 490m euros / year from four years after closing onwards.
- Jean François Fallacher has been appointed non-executive
Chairman of the JV and Meinrad Spenger as its CEO.
Orange and MASMOVIL announce today the creation
of a new Joint Venture, completing the agreement to combine their
operations in Spain1. Orange and MASMOVIL’s shareholders each own a
50% stake of the JV, with equal governance rights in the combined
entity.
With over 37 million broadband and mobile lines,
the new entity becomes the leading player on the Spanish telecoms
market in terms of customers, with the ambition to lead the market
in talent, user experience, innovation, environmental and social
impact, and fiber and mobile coverage. Its formation creates a
sustainable player with the financial capacity to continue
investing in next-generation networks for the benefit of the
market, consumers and enterprises in
Spain. According
to revised estimates, the new company is expected to generate
synergies of more than 490m euros per year by the fourth year after
closing. Based on preliminary closing accounts, the respective
proceeds at closing will be approximately €4.4bn for Orange and
approximately €1.65bn for MASMOVIL shareholders.
The companies (Orange Spain and MASMOVIL) will
operate as a single entity: the accounts of both companies will be
consolidated at the level of a newly registered legal entity (the
JV). As planned, the new company will be operational from
today.
Jean François Fallacher, CEO of Orange France,
has been appointed non-executive Chairman of the new company. Jean
François, who was previously CEO of Orange Spain between September
2020 and April 2023, has extensive experience of the Spanish
market.
The Board of Directors of the Joint Venture has
also confirmed the appointment of Meinrad Spenger, CEO of MASMOVIL
since 2006, as CEO, and Alberto Castañeda as Secretary of the Board
of Directors. Ludovic Pech and Germán López have also been
confirmed as CFO and COO, respectively.
“It is a huge honour and an enormous
responsibility to serve our more than 30 million customers in
Spain. We are going to try hard to ensure that they continue to be
the most satisfied clients in our country. With our JV, the Spanish
telecom market has now a stronger company with the capacity to
innovate and invest and to serve our clients in the residential and
business segment as their trustful partner,” said Meinrad Spenger,
CEO of the JV.
Christel Heydemann, CEO of Orange, said “Today’s
announcement is an important stepping-stone in the deployment of
Orange’s long-term strategic plan in Europe. By creating a
stronger
and more sustainable player, the joint venture
launched today will help drive innovation and investment in
high-speed broadband and digital services in Spain. This is clearly
a positive step forward in our overall vision for a strong and
thriving telecoms industry in Europe.”
The advisory teams for the parties include:
- Lead financial advisors: Goldman Sachs Bank Europe SE to
MASMOVIL and Lazard Frères to Orange.
- Lead debt advisor: BNP Paribas.
- Joint rating advisors: BNP Paribas and Société Générale.
- Freshfields to MASMOVIL and Jones Day to Orange, as legal
M&A advisors.
- Freshfields, Latham and Watkins, Perez Llorca and Gide, as
competition law advisors.
- Simpson Thacher & Bartlett, together with Evergreen Legal,
as legal counsel to the Borrowers, for all financing matters
related to the transaction, and Linklaters as legal counsel to the
Lenders.
- PWC to MASMOVIL and EY to Orange, as Due Diligence
partners.
- Also acted as financial advisors to MASMOVIL: BNP Paribas,
Evercore, JP Morgan and Santander.
- Also acted as joint debt advisor: Rothschild & Co.
For more information: see previous press release.
About MASMOVIL Group
MASMOVIL Group is one of the most outstanding
operators in Spain in terms of growth over the last few years and
offers fiber, mobile, TV, and other new services such as energy,
health, alarms, or financial services, for residential customers,
businesses, and operators. The Group offers its customers access to
the largest FTTH coverage in Spain with more than 29 million
marketable households and 3G, 4G and 5G mobile networks to 98.5% of
the Spanish population thanks to its hybrid strategy combining its
own and third parties infrastructures. MASMOVIL has also
launched its 5G services, which are already available in 2,400
cities in Spain. The Group has more than 16M customers. MASMOVIL
has been awarded on several occasions as the best broadband and
fibre optic operator.The Group has achieved net zero carbon
emissions for scopes 1 and 2 since 2020 -including the Euskaltel
Group in the calculation-, positioning it as the first
telecommunications operator in Europe to achieve such an
achievement and the one with the lowest absolute residual level of
emissions. It is the first telecommunications operator in Europe to
become a B Corp company and has a strong commitment to creating a
positive environmental and social impact. MASMOVIL Group is also
leading sustainability and ESG in Spain achieving 5 ESG ratings in
a short period of time with very high standings from prestigious
organizations as S&P, Morning Star Sustainalytics, Sustainable
Fitch, CDP and Clarity.MASMOVIL is participated by Cinven, KKR and
Providence Equity Partners since November 2020.Follow us:MASMOVIL
Group
website: https://www.grupomasmovil.com/Twitter: https://twitter.com/grupomasmovil
MASMOVIL press contact: Fernando Castro;
fernando.castro@masmovil.com
Mobile: +34
656.160.378
About Orange
Orange is one of the world’s leading telecommunications
operators with revenues of 44.1 billion euros in 2023 and 137,000
employees worldwide at 31 December 2023, including 73,000 employees
in France. The Group has a total customer base of 298 million
customers worldwide at 31 December 2023, including 254 million
mobile customers and 25 million fixed broadband customers. The
Group is present in 26 countries. Orange is also a leading provider
of global IT and telecommunication services to multinational
companies under the brand Orange Business. In February 2023, the
Group presented its strategic plan "Lead the Future", built on a
new business model and guided by responsibility and efficiency.
"Lead the Future" capitalizes on network excellence to reinforce
Orange's leadership in service quality.Orange is listed on Euronext
Paris (symbol ORA) and on the New York Stock Exchange (symbol
ORAN).For more information on the internet and on your mobile:
www.orange.com, www.orange-business.com and the Orange News app or
to follow us on Twitter: @orangegrouppr.Orange and any other Orange
product or service names included in this material are trademarks
of Orange or Orange Brand Services Limited.
Orange press contacts:Tom Wright;
tom.wright@orange.comVanessa Clarke; vanessa.clarke@orange.com
1 The contemplated transaction does not include
notably TOTEM Spain or MASMOVIL Portugal
- PR_Orange_Masmovil_Closing_EN_260324
Grafico Azioni Orange (TG:FTE)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Orange (TG:FTE)
Storico
Da Nov 2023 a Nov 2024
