Spanish MVNO Pepephone is reportly on the block, following a busy year for domestic fixed-line M&A but a tougher time for mobile operators such as TeliaSonera’s Yoigo.
Spanish MVNO Pepephone has reportedly mandated BBVA to sell the company for €200m (US$227m).
The company, owned by JHG Investments Models (the vehicle of CEO Javier Hidalgo) and Grupo Atento Inversiones (the vehicle of deputy CEO Rosario Varo), is targeting private equity suitors rather than strategic players, according to El Economista.
TeliaSonera-owned Yoigo, Spain’s number four cellco, had reportedly held talks with Pepephone over both an acquisition and a wholesale agreement, but these collapsed.
The buyer of the MVNO, which rides on the network of Telefónica’s Movistar, would receive the brand, profitable turnover, 15 employees and over 520,000 customers (some 485,000 for mobile services, and another 35,000 for ADSL).
The company is set to launch in Mexico and is considering entering Colombia and other Latin American markets.
Initially launched under the auspices of leading Spanish travel agency Grupo Globalia – the CEO of which is Juan Jose Hidalgo – in 2007, the younger Hidalgo and Varo bought out the MVNO in 2011.
Last year, it turned over €60m and made a profit of €9m. According to companies registrar, Registro Mercantile, the company turned over €51m and made a profit of some €4.25m in 2013.
Under its 2012 three-year plan, the company targeted a €100m turnover for FY 2015.
In September, the company launched a green energy wholesale business called Pepeenergia.
Spokespeople for Pepephone and BBVA could not be reached by press time.