Spanish operator Masmovil has plans to set up a new subsidiary to build the fibre-to-the-home (FTTH) network of Euskaltel and is looking to divest a 51 percent stake in the new entity, reports business daily Expansion. Just a few months after finalising its EUR 2 billion acquisition of Euskaltel, the Masmovil group is now looking at ways of reducing its EUR 6.5 billion debt pile and upgrading the R, Telecable and Euskaltel network in northern Spain.
According to the report, the plan is to create a subsidiary to connect around 1.1 million homes to FTTH and migrate Euskaltel’s customers from HFC cable with coaxial connections to fibre. Masmovil’s strategy involves selling the FiberCo to a new investor for EUR 500 million plus a EUR 100 million commitment to invest in the rollout, before buying back a 49 percent stake for EUR 150 million.
Potential bidders cited in the report include Ardian, which has recently acquired local fibre provider Adamo, plus Asterion, Lyntia and Onivia, which has already bought more than 2 million of Masmovil’s FTTH homes.
