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U.K. investment firm aims to reach agreement with Spanish operator’s minority shareholders amid rival bid reportedly from Masmovil.
U.K. investment fund Zegona said on Monday it is pushing ahead with its bid for Yoigo despite not striking a deal with the Spanish operator’s minority shareholders and amid rival interest.
"It is our intention to progress this transaction," said Zegona, in a statement.
Zegona revealed that it did in fact reach an agreement with Yoigo’s majority shareholder, Telia Company, during the exclusive negotiating period, which expired on 1 June. However, "discussions with Yoigo’s minority shareholders have not led to a full agreement."
Furthermore, Zegona said it was informed that there is another bidder interested in acquiring Yoigo.
Indeed, it is understood that the rival bidder is Spain’s self-styled fourth convergent telco Masmovil.
According to a report by Expansion earlier in June, Masmovil made an offer worth €700 million for 100% of Yoigo’s debt and equity, higher than Zegona’s reported offer of €550 million.
Zegona on Monday did not name Masmovil, but described the rival offer as "higher than that which Zegona considers to be fair and reasonable."
There are also questions over how Masmovil would fund the transaction, particularly since it is currently in the middle of acquiring MVNO Peppephone for €158 million. By comparison, Zegona is said to have already secured financing from several banks, and lined up Goldman Sachs to underwrite its offer.
"Given the current uncertainty of this new bid and our expectation of greater clarity within a relatively short period, the board considers it is in the best interest of shareholders that Zegona remains engaged in the Yoigo transaction," said Zegona.
