Spanish regulator green lights Yoigo acquisition

Bill Boyle
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Spain's communications and competition regulator (CNMC) has approved MasMovil’s purchase of Yoigo without imposing any conditions

In a statement the regulator said: “The CNMC applauds the entry of new mobile operators that help increase competition in the provision of retail mobile communication services,” CNMC said in a statement, also saying that  in its assessment it had taken into account the fact that MasMovil is a virtual operator without its own network in Spain. 

The CNMC decision comes after MasMovil outbid the UK investment company egona to obtain control of Yoigo, buying both Telia's 76.6% majority stake and the remaining shares from the local minority shareholders for €612m.

The deal means that MasMovil is the fourth largest mobile network operator in Spain, with a customer base of around 4.1 million, including the recently acquired Pepephone. MasMovil will have around 8 percent of Spanish mobile customers. 

Yoigo receives the support of more than 800 exclusive points of sale throughout the country and is managed by a team of around 100 employees. In 2015 Yoigo reached revenues of €865M, EBITDA (Spanish GAAP) of €83M (9.4% EBITDA margin) and Operating CF1 of €34M, including both network maintenance as well as CAPEX for network expansion and 4G update, and a recurrent Operating CF of €64M.

The terms of the transaction imply an Enterprise Value (EV) of €612M for 100% of Yoigo’s business, including the shares, shareholder loans, and the company’s net debt.