Gervais Pellissier, deputy CEO of Orange, today defended the purchase of Jazztel comes at a good time because it coincides with the economic recovery in Spain. In a meeting with the media, the executive insisted the bet by Orange Spain, remembering the acquisition of Amena nine years ago. In this regard, he recalled that Spain is the second market of the Orange group, second only to France, to contribute 10% of revenues and 11% of EBITDA.
The manager stated that the operation does not mean an increase in costs for the customer and cited Austria, where mergers have not led to an increase in prices. The executive also said the group is committed to downsizing may come after the integration does not exceed 400 employees. The new Orange Spain will have more than 8,000 employees.
Jazztel Regarding the brand, said he still has not taken a decisión.El manager said the operation will close in the first half of 2015, one Once approved by shareholders and competition authorities. In this case, did not say whether the purchase analysis correspond to Brussels or to the Spanish CNMC.
The manager defended the offer of 13 euros per share in cash for shareholders, but said that Orange will be able to create a better company. “It’s the final offer,” dijo.Jean Vignolles, CEO of Orange Spain, also insisted that it is the right time to strengthen the company’s presence in the Spanish market time. He also explained that the intent of Orange is to integrate the management teams of both companies.
Leader in
Vignolles said that with the purchase of Jazztel will create a leader in the sector, highlighting the growth recorded by Jazztel in recent years. The manager recalled that Jazztel and comes with its fiber to 2.2 million homes exceed 60,000 plus customers.
The executive noted that both companies have maintained growth in both the fixed broadband market as in the mobile world. Thus, stressed that the new Orange Spain will have 3.3 million broadband customers and 14 million users. “We will be the second largest fixed broadband” Vignolles said, noting that mobile will be the third player, but a very close second.
In relation to the field of fiber, said to be to add Jazztel deployments, which reaches 2.2 million households, and Orange, which reaches 800,000. The company plans to bring its fiber network to 10 million households in 2017 The executive said he will build on established deployment agreements with Vodafone but said it is too early to know what the total investment in the process.
Synergies
Vignolles also said the transaction will generate synergies of 1,300 million euros. Of these, about 800 million for the fiber network. Another 800 million from the gross costs, while Orange expected integration costs 300 million. In this case noted that Jazztel not pay the fee for the financing of RTVE, something that might have to do to integration. Additionally, he said that both companies are very complementary distribution channel.
Federico Colom, CFO of Orange Spain, Orange said that is strong in the shops and in attendance Jazztel presencial.En no relation to the sharp rise in the share price of Jazztel in the afternoon yesterday, Colom said authorities are investigating the process possible insider trading, and added that his company will try to find the origin. “It’s a very serious matter,” he said.
With regard to the prices of services, Pellissier said to have fallen in all countries of Europe, indicating that they are low compared to USA and Asia. Vignolles said to have fallen between 40% and 30% .In regarding the possible purchase of another company in Spain, said that the acquisition of Jazztel assumed 10% of the capitalization of the group and “we have such a large pocket. Pellissier said the total integration of Jazztel take at least two years before it will be impossible to make a purchase.
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