Spanish fixed-line player Jazztel will stop trading on the Madrid stock exchange from 13 August, after 94.75% of its shareholders accepted Orange’s €13 per share acquisition offer.The French telco will exercise its right to acquire the remaining…
Spanish fixed-line player Jazztel will stop trading on the Madrid stock exchange from 13 August, after 94.75% of its shareholders accepted Orange’s €13 per share acquisition offer.
The French telco will exercise its right to acquire the remaining 5.25% of Jazztel’s shares at the same price.
Last month, the company said it would de-list Jazztel and merge it with its Spanish unit if more than 90% of Jazztel shareholders accepted its offer by the 24 June deadline.
In order to gain regulatory approval for the deal, which was cleared last month, Orange has been asked to divest its fibre network, largely composed of redundant connections between Orange and Jazztel’s existing networks.
Listed MVNO Masmovil, which has publicly expressed an interest in the assets, has been tipped as the most likely candidate.
“Orange is very satisfied with this result, which will enable Orange Spain and Jazztel to build together the most dynamic convergent player on the Spanish market,” Orange said in a statement.
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.
