The dance of mergers in the telecommunications sector has already reached its second part, closed this summer after buying Vodafone Ono. Jazztel is the next chosen partner, as speculated for months. Its attractiveness as broadband operator has finished convince Orange that has finally materialized bid: about 3,350 million euros at a rate of 13 euros in cash per share, a proposal for the 100% of the share capital of a company listed on the Stock Exchange.
A few hours before the company confirmed the existence of regulator-an extreme offer that met on the night of Monday-The Commission National Securities Market (CNMV) had anticipated events to suspend “provisionally” their market price “for concur circumstances that could disrupt the normal course of operations.” And it had revalued Jazztel appreciably in recent years: 12.5% same day, 37% so far this year and nearly 55% in the last 12 months
. The next step is to obtain the support of other investors, at least to add 50% of the capital without the participation of the above. Failure will somewhat unlikely since there are several major investment funds such as the British Gobernance for Owners (second importance, with 4.9%) and American Fidelity (4.2%) – and financial institutions – French banks like BNP Paribas (1.6%) – willing to sell at a good profit, Orange reserves the right to thwart the entire operation
The last condition is that the. Jazztel council waives the possible purchase of Telstra, according to last week said the CNMV, and was negotiating with its parent, the Swedish multinational TeliaSonera (which controls 76.6%). Industry sources noted that the offer could have be around EUR 500 million, ie almost half of its parent’s assessment gave him two years ago in similar negotiations with Vodafone and Orange. Today, however, you would be happy with a range of between 700 and 800 million in view of the fall in sales (16.3% in the first half to 407 million euros). But Jazztel are unwilling to reach that level, although the complementarity between the two companies seemed almost ideal.
What’s more, there were those who interpreted week that all responded to a maneuver team Fernández Pujals being to increase their potential sale to Orange and the facts seem to have given the reason for good measure. Fresh money has convinced him of the goodness of the project, despite the end of May already rejected a merger because its subsidiary is not traded on the stock exchange and that the exchange of shares impossible with a real exchange. In fact, the CEO of the Cable Company is committed even though third counteroffers occurring. yes, provided that the French were to improve. Fernández Pujals of origin even cubanoespañol American nationality, founded in 1988, the restaurant chain Telepizza, whose 30% stake sold 11 years later for almost 50,000 million pesetas (360 million euros) to set up a business with little more than a thousandth part of that capital
Now aims to give a similar pitch. invested 61 million to purchase in 2004 25% of Jazztel and after resale of that piece of the pie, now aims to achieve nearly 500 million by 14.5% who still controls. With this purchase, forced by the acquisition of Ono-the Spanish leader cable- at the hands of Vodafone, Orange hopes to regain second place in the national market, just under the shadow of leadership Movistar.
added 1.5 million broadband customers in the plans though Jazztel is expected to add four million customers by 2017 thanks to its deployment of optic fiber to achieve a share of 28% and as many mobile where , however, could continue under the British operator. The French company estimates that this operation will get synergies 1,300 million, while capital will be expanded up to 2,000 million to finance the cost of the transaction.
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