Recently, the MásMóvil group definitively took control of the Euskatel group after a takeover bid that has lasted for months, as the different authorizations were obtained from the different government bodies. But to face this purchase, MásMóvil has fattened its debt and has taken it to 6,500 million euros, so what now is to try to lower it as much as possible.
Expansión account in an exclusive published in its media that apparently MásMóvil has found a partial solution to get rid of part of the expense that has originated the purchase, something that had been rumored previously. Apparently the yellow operator has plans to create a subsidiary that builds a fiber network for current Euskaltel customers and also wants to sell more than 50% of it.
Create a subsidiary, sell it and buy back 49%
With the acquisition of the Euskaltel group, MásMóvil acquired one of the last active cable companies in our country. The vast majority of Euskaltel’s infrastructure consisted of HFCs, optical cabling for the backbone but coaxial connections to reach homes. The company now considers how to face the “modernization” of this network, the definitive leap to fiber, and it seems that you have already found the solution.
According to the information provided by Expansión, MásMóvil will create an independent company that will be in charge of the installation, management and maintenance of this future new fiber network, a company that will be called FiberCo. FiberCo will therefore be responsible for bringing fiber to Euskaltel’s former customers in Euskadi (former Euskaltel), Galicia (former R) and Asturias (former Telecable).
But to face this investment, MásMóvil will first sell access to the new FiberCo, with external capital, to later buy back 49% of it and keep a large stake, although not the majority. The new investor will be made with FiberCo for 500 million euros, will have to invest another 100 million to create the new fiber network and, later, MásMóvil will buy back 49% for 150 million euros. That is, finally MásMóvil will have 49% of FiberCo and will earn 450 million euros in the exchange.
MásMóvil has already stated that it will not sell anything from the current Euskaltel, keeping the company’s infrastructure both in the backbone network and in the coaxial cable accesses, so FiberCo will need to create a network parallel to the original. According to Expansión, among the candidates to keep 51% of the new FiberCo are market players such as Onivia, Asterion, Lyntia or Ardian, which currently has taken over Adamo.
Via | Expansion