TeliaSonera has signed up Deutsche Bank to prepare the sale of its 77 percent stake in Spanish mobile unit Yoigo, according to unnamed sources cited by business daily Expansion. The report adds that TeliaSonera expects to receive bids of around EUR 600 million in the coming weeks, with rival operator Masmovil Ibercom and Zegona, the investment vehicle that last year acquired regional broadband operator Telecable, said to be most interested in Spain’s number four operator.
After nine years of activity in Spain, Yoigo still boasts over 3.3 million customers but its relatively low market share of just over 6 percent remains a concern to the Swedish parent company. MasMovil has a long-held ambition to take over from Yoigo as Spain's fourth national integrated operator and recently acquired broadband assets from Jazztel that enable it to offer fibre services to around 720,000 households in Spain.
Zegona, an investment vehicle set up by former Virgin Media finance director Eamonn O'Hare, last year acquired regional broadband operator Telecable, present in the northern Asturias region, for an enterprise value of EUR 640 million and acquiring Yoigo would serve to give Telecable a national scope and allow it to better compete with rivals such Euskaltel.
Yoigo’s price has declined significantly from the EUR 1 billion sought by TeliaSonera in 2012, when it was said to have considered bids of around EUR 700 million from Vodafone and Orange before halting the sale process.
