Masmovil's Euskaltel takeover bid edges closer as Abanca sells stake

Corporacion Financiera Alba SA

28/07/2021 16:23

MADRID, July 28 (Reuters) - Spanish teleco Masmovil's bid to
buy out its fellow operator Euskaltel  EKTL.MC  edged closer on
Wednesday after Abanca, a Spanish bank and minority Euskaltel
shareholder, announced it would sell its 4.5% stake.
    Under Masmovil's offer of 11 euros per share, Abanca would
receive approximately 88 million euros ($103.81 million) in
exchange for its 8 million shares, bumping support for the
acquisition up to 57% of Euskaltel's shareholders, a new high,
but still below the 75% mininum acceptance threshold.
    Masmovil had previously secured a narrowly majority stake of
52% thanks to agreements with Euskaltel's three main investors -
Zegona, Kutxabank, and Corporacion Financiera Alba.  urn:newsml:reuters.com:*:nL8N2LQ0HL
    Itself the target of a takeover bid by U.S.-based funds
Cinven  CINV.UL , Providence and KKR  KKR.N  last year, Masmovil
was delisted from Madrid's stock exchange as a result, something
which is likely to happen to Euskaltel if the merger proceeds.
($1 = 0.8477 euros)

 (Reporting by Clara-Laeila Laudette; Editing by Emma Pinedo and
Sandra Maler)
 ((Clara-Laeila.Laudette@thomsonreuters.com;))