MásMóvil chief rules out Euskaltel acquisition

Spanish alternative telco MásMóvil’s CEO Meinrad Spenger has definitively ruled out acquiring regional cable operator Euskaltel, following speculation that the pair could combine.

During a presentation on the creation of anew startup accelerator by the company, MASventures, Spenger said that he did not believe the acquisition of Euskaltel would create value for shareholders, according to Spanish press.

Spenger indicated that MásMóvil’s priority would be accelerating organic growth.

MásMóvil has a national customer base of around eight million, compared to Euskaltel’s multiplay customers base of only 900,000 concentrated in the northern regions of the Basque Country, Asturias and Galicia.

MásMóvil and Euskaltel recently struck a partnership to develop a pilot 5G network in San Sebastian, fuelling speculation about a possible combination.

Spain’s third-largest telco, Orange España, recently indicated that it was not currently studying an acquisition of Euskaltel, despite press reports that it had hired Credit Suisse to advise on a possible bid.

Euskaltel’s 15% UK shareholder Zegona Communications, the former owner of Asturias operator Telecable, which Euskaltel acquired, recently raised over £100 million from a share placement to help it finance purchases of Euskaltel shares on the open market.