A few months ago, there was already talk about this sale. In itself, the idea was to sell its fiber subsidiary for 2,000 million euros, 40% of the business that they have created between MasOrange and Vodafone, now there is talk of 4,000 million euros. So these two giants of the telecom sector in Spain are already looking for buyers for their subsidiary created this summer, which has already been valued between 7,000 and 10,000 million euros.
It is not about their separate businesses, but about the fiber joint venture they created a few months ago, and which seems to have several interested parties. In any case, MasOrange has just signed BNP Paribas, a bank close to the former MasMovil, to be present in a sale selection process. And all because he was an advisor to this group during the sale in the summer of 2020 to KKR, Providence and Cinven for more than 5,000 million.
Looking for a new partner
In July this year, MasOrange and Vodafone announced the terms to set up a nationwide fiber partnership. A shared fiber partnership that will cover approximately 11.5 million facilities throughout the country. But, as we began to see a few months ago, the idea is to start the search for an investment partner. And this is precisely what has just begun.
According to the media ‘El Confidencial’, market sources assure that BNP Paribas will be present during the process to retain a candidate. Although for this selection process the following have also been interested: Goldman Sachs, Santander, Morgan Stanley, Evercore, JP Morgan, UBS, Lazard and Rothschild. But, finally, BNP Paribas will be in charge of carrying out this operation.
On the other hand, various other sources in this same sector affirm that BNP Paribas could have practically completed all the necessary documentation to carry out this operation, which has been named ‘Project Surf’. Supposedly, the official launch of this will take place next November.
A 40% share
It is not going to be sold completely, but Vodafone and MasOrange’s intention is to find an investment partner. Hence the main idea is to sell a 40% stake. This would result in between 2,800 and 4,000 million euros. And the truth is that there are two major approaches in this regard. These are Antin Infrastructure, which in our country already owns Elanta, and Macquarie, owner of Onivia in Spain.
These two funds have already made an appointment as they are interested in being part of this fiber joint venture formed recently by these two operators. Is there a date? The intention is for it to be completed during the first part of 2025. Once the operation is closed, the capital itself will be in the hands of MasOrange, retaining around 50%. Vodafone, for its part, will have 10% of the shares and the new investor will keep up to 40% of the total. Therefore, this is what the fiber joint venture created this summer would look like after selling a portion of its shares for the arrival of an investment partner.
