Jazztel’s shareholding board members have unanimously decided to accept Orange’s €3.4bn (US$3.7bn) takeover offer, the Spanish fixed-line player said in a statement.The board mandated Goldman Sachs and JP Morgan as financial advisers on the…
Jazztel’s shareholding board members have unanimously decided to accept Orange’s €3.4bn (US$3.7bn) takeover offer, the Spanish fixed-line player said in a statement.
The board mandated Goldman Sachs and JP Morgan as financial advisers on the sale.
Assuming that more than 90% of Jazztel shareholders accept the offer, Orange plans to delist the company and merge it into its existing Spanish unit. The offer acceptance deadline is 24 June.
If the threshold is not met, Jazztel will continue to trade as a listed company.
Last September, when the acquisition was first announced, Jazztel president Leopoldo Fernandez Pujals agreed to tender his 15% stake in the company.
Spanish market regulator CNMV last month approved the deal, a week after the European Commission greenlit the deal with conditions. Under one of these, the buyer must sell a fibre network, largely composed of redundant connections between Orange and Jazztel’s existing networks.
Orange expects to generate up to €1.3bn in synergies from the combination, thanks to savings in operational expenditure and network investment.
The operator also aims to deploy fibre to 10 million Spanish households by the end of 2016.
