Virgin Group is the latest potential suitor for Spanish mobile challenger Yoigo, according to a report in El Economista citing unspecified sources. Preliminary talks have reportedly been held between the British company and Yoigo’s owner,…
Virgin Group is the latest potential suitor for Spanish mobile challenger Yoigo, according to a report in El Economista citing unspecified sources.
Preliminary talks have reportedly been held between the British company and Yoigo’s owner, Sweden’s TeliaSonera, which has been looking to offload the operator for years.
Virgin declined to comment on the report and TeliaSonera did not reply to a request for comment.
Yoigo was reported to have attracted attention from Mexican telecoms magnate Carlos Slim earlier this year. It has previously been more strongly linked to larger Spanish rivals Orange and Vodafone.
Last summer, TeliaSonera’s CEO Johann Dennelind confirmed it was reviewing its presence in Spain. At the time, he acknowledged that the strong convergence trend in Spain – subsequently exacerbated by Orange’s purchase of Jazztel – was putting severe pressure on Yoigo’s mobile-only offering.
TeliaSonera had tried to sell Yoigo in 2012, but the sale process was later called off as bidders were unwilling to match its €1bn (US$1.4bn) valuation.
According to Q4 2014 figures from Spanish regulator CNMC, Yoigo had 3.4 million lines, a fraction of the more than 11 million Orange and Vodafone both have and less than a quarter of the 16 million claimed by Telefonica.
