Masmovil closes the purchase of Pepephone

As agreed last April, Masmovil has concluded its purchase of a 100% stake in Pepephone, one of the largest virtual mobile operators in the Spanish market. It was set up in 2007, and by the end of 2016 had over 460,000 mobile telephone and 35,000 broadband customers.

Pepephone has 22 employees and in 2015 invoiced 64 million euros, with an EBITDA of 13.1 million euros. The agreed purchase price was 158 million euros, of which 20 million were paid in cash in April, while the remainder will be funded through a combination of debt and the issue of new Masmovil shares with a capital increase. The company expects to save 10 million euros a year in costs thanks to the synergies in both the mobile and broadband business.

Purchase of Yoigo
Last June, Masmovil also closed the purchase of 100% of the shares in Yoigo, at that time the fourth largest national operator and until then owned by Telia (76.56%), ACS (17%), FCC (3.44%) and Abengoa (3%).

At the end of 2015, Yoigo had 3.3 mobile telephony customers and its own network with almost 4,700 sites, giving coverage to 85% of the population. It also has a network of 800 exclusive points of sale and 100 direct jobs.

In the financial year 2015 Yoigo invoiced 865 million euros, with an EBITDA of 83 million, representing a margin of 9.6%. At the time of the acquisition the company was valued at 612 million euros, and it is estimated that this purchase will save 60 million euros in costs.

The National Markets and Competition Commission is expected to authorize this transaction by the end of this year.

Both these purchases will allow Masmovil to consolidate its position as the fourth largest national telecommunications operator, with a total of 4.2 million mobile customers and around 70,000 broadband customers –which will be the focus of its expansion from now on. The new group will invoice over one billion euros and have an estimated EBITDA of 108 million euros.

Last updated: 05|10|2016

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