Euskaltel's takeover of R rises to EUR 1.19 bln

News General Spain 6 OKT 2015
Euskaltel's takeover of R rises to EUR 1.19 bln

Spanish regional cable operator Euskaltel, operating in the Basque Country, has announced that it has reached an agreement with shareholders of Galician cable provider R to acquire the operator for EUR 1.19 billion. In a statement to Spanish market watchdog CNMV outlining the terms of the deal, Euskaltel said the final price was higher than the initial estimation of EUR 1.155 billion due to the inclusion of EUR 300 million in debt and the improved operational prospects of R. The company added that it would refinance R’s debt and would pay in cash via a EUR 600 million capital hike.

When it announced the deal in July, Euskaltel said it had offered R’s shareholders cash and new shares valued at 10.9 times the company’s EBITDA. The combined entity will have over 715,000 residential and business customers and the companies will continue to operate under their original brands in their respective regions in northern Spain. The deal is still subject to approval by Euskaltel shareholders and the relevant competition authorities.

Categories:

General

Companies:

Euskaltel,  R

Countries:

Spain

Tags:

Shareholders & subsidiaries, Regulations, Wireline, Wholesale, M&A buyouts & divestments

Related Articles

SPAIN 26 FEB 2017

Euskaltel net profit up 68% to EUR 281 mln following R buy

Spanish regional operator Euskaltel reported revenues of EUR 572.9 million in 2016, compared to EUR 327.8 million the previous year, driven by the acquisition of Galician cable provider R. The group's adjusted EBTIDA also surged, by 68 percent year on year, to EUR 280.6 million, while its revenue margin grew to a record 49 percent thanks in part to a business strategy based on the bundling of services and a wide range of convergent offerings. In fact, Euskaltel said 66 percent of its customers were now on t

SPAIN 28 APR 2016

Euskaltel revenues up 79% to EUR 142 mln following R buy

Spanish regional operator Euskaltel reported first-quarter revenues of EUR 142.3 million, up 78.7 percent year on year, in its first set of consolidated results since last year's IPO and the acquisition of Galician cable provider R. The operator's net profit surged to EUR 14.6 million from EUR 1.2 million in the year-earlier quarter, with EBITDA increasing 83.3 percent from EUR 37.7 million to EUR 69.1 million. The first-quarter sales are also 2.3 percent higher than the combined revenues of Euskaltel and R

SPAIN 29 FEB 2016

Galicia's R confirms switch from Vodafone to Orange

Spanish regional cable operator Euskaltel has confirmed at the presentation of its annual results that it will be switching the mobile network of its recently acquired Galician subsidiary R from Vodafone to Orange. The main reason for the decision is that R's deal with Vodafone didn't envisage the provision of 4G services. In addition, Euskaltel already migrated from Vodafone to Orange in 2014, so the move would allow Euskaltel-R to work with a single provider. Euskaltel said R's customers will be gradually

SPAIN 26 FEB 2016

Euskaltel posts first sales growth in three years

Spanish regional operator Euskaltel, present in the Basque Country, reported revenues of EUR 327.8 million in 2015, compared to EUR 321.2 million the previous year, its first annual sales growth since 2012. The operator also added over 100,000 mobile lines thanks to its takeover of Galician cable provider R to reach a total of 368,000 active lines. Including R, revenues increased 8.8 percent to EUR 349.4 million. Adjusted EBTIDA, excluding costs relating to the R merger and its recent IPO, rose 1.5 percent

SPAIN 26 JAN 2016

Galicia's R to switch from Vodafone to Orange - report

Spanish regional cable operator Euskaltel, operating in the Basque Country, is in talks to switch the mobile network of its recently acquired Galician subsidiary R from Vodafone to Orange, according to unnamed sources cited by business daily Expansion. The change of network would follow Euskaltel's own move from Vodafone to Orange in 2014 and would allow the Basque operator to pay back some of the EUR 222 million in damages it was ordered to pay to Orange in 2012 for terminating an earlier deal in 2006.

SPAIN 4 DEC 2015

Salaverria named new R director - report

Spanish regional cable operator Euskaltel has appointed Manuel Salaverria as the new director of its Galician subsidiary R Cable, reports El Economista. Salaverria replaces Arturo Dopico, who has decided to leave R after 17 years at the Galician cable operator. The move comes after Euskaltel last week finalised its acquisition of R for a total of EUR 1.19 billion after receiving approval by shareholders and the relevant competition authorities. Euskaltel said the combined entity will have over 715,000 resid

SPAIN 30 NOV 2015

Euskaltel closes EUR 1.19 bln buy of Galician operator R

Spanish regional cable operator Euskaltel, operating in the Basque Country, has finalised the acquisition of Galician cable provider R for a total of EUR 1.19 billion after receiving approval by shareholders and the relevant competition authorities. Euskaltel said the combined entity will have over 715,000 residential and business customers and the companies will continue to operate under their original brands in their respective regions in northern Spain. "The merger of the two companies will allow us to g

SPAIN 24 NOV 2015

Euskaltel places 25.3 mln shares to fund R purchase

Spanish regional cable operator Euskaltel, operating in the Basque Country, has announced the launch of a share issue to help fund its EUR 1.19 billion acquisition of Galician cable provider R. In a statement to Spanish market watchdog CNMV, Euskaltel said it would place 25.31 million shares at a price of EUR 10.08 per share via an accelerated book-building offer. In total, the share issue would be worth EUR 255 million, said Euskaltel, adding that the new shares will be admitted in the Bilbao, Barcelona, M

SPAIN 29 OKT 2015

Euskaltel reports EUR 3 mln Q3 loss on R buy and IPO costs

Spanish regional cable operator Euskaltel, operating in the Basque Country, reported a EUR 3.3 million loss in the third quarter due to the impact of costs relating to its takeover of Galician cable provider R and its recent IPO. Euskaltel added that without these "exceptional and non-recurring" costs its third quarter net profit would have been around EUR 36 million, an improvement on the year-earlier result of EUR 25.6 million. Third quarter revenues came to EUR 244 million, compared to EUR 239 million a

SPAIN 8 OKT 2015

Euskaltel launches 4G on selected tariffs

Spanish regional cable operator Euskaltel, operating in the Basque Country, is set to launch its 4G service on 09 October, but only on selected tariffs. The operator's move comes after it reached an agreement with Orange Spain earlier this year to launch 4G services on the latter's network. Customers will be able to surf at 4G speeds by subscribing to the TP Unlimited 1GB or 3GB plans, complete with unlimited calls, for EUR 25.90 and EUR 30.90 per month respectively. The 4G service is also available on the

SPAIN 1 OKT 2015

Euskaltel targeting Telecable following R buy - report

Spanish regional cable operator Euskaltel, operating in the Basque Country, is considering the possibility of acquiring rival broadband operator Telecable, according to a report in business daily Expansion. The consolidation of the Spanish telecommunications market, with Orange recently completing its takeover of Jazztel and Vodafone merging with Ono, has meant Spain's smaller regional operators need volume to survive. Euskaltel recently agreed to purchase rival cable provider R, operating in Galicia, for E

SPAIN 27 JUL 2015

Zegona acquires Spain's Telecable for EUR 640 mln

Zegona, an investment vehicle set up by former Virgin Media finance director Eamonn O'Hare, has reached an agreement to acquire Spanish regional broadband operator Telecable from Carlyle Group and Liberbank for an enterprise value of EUR 640 million. In a statement Zegona said it expected to close the deal by mid-August and that it would fund the acquisition with a combination of GBP 251 million of new equity, backed by institutional investors, funds from its recent float and a new debt facility arranged by

SPAIN 24 JUL 2015

Euskaltel to buy regional operator R for EUR 1.16 bln

The consolidation of the Spanish telecommunications market shows no sign of abating with regional cable operator Euskaltel, operating in the Basque Country, agreeing to purchase rival cable provider R, operating in Galicia, for EUR 1.16 billion. In a statement outlining the terms of the deal, Euskaltel said it offered R's shareholders cash and new shares valued at 10.9 times the company's EBITDA. The deal means CVC Capital Partners, which had a 70 percent stake in R, will become one of Euskaltel's leading s

SPAIN 3 JUN 2015

Euskaltel confirms imminent IPO plans

Spanish regional cable operator Euskaltel has announced plans to list its shares on the Madrid stock exchange later this year. Euskaltel, operating in the Basque Country, said its current shareholders – savings bank Kutxabank, utility Iberdrola and investment firm International Cable – will sell existing shares in an IPO jointly coordinated by JP Morgan and UBS. Unnamed sources cited by Reuters suggested that the operator was seeking to interest international investors by listing around 50 percent of the co

Just In

20 DEC 15:08

Dialog Axiata to offer Starlink satellite service across Sri Lanka

20 DEC 14:51

Sri Lanka raises LKR 10 billion in 5G spectrum auction

20 DEC 14:00

Vi introduces Niyo Zero Forex Markup Card for travelers

20 DEC 13:39

True reshuffles executive team

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.