TeliaSonera expected to begin Yoigo sale soon
Bidding for TeliaSonera’s Spanish operation Yoigo is reportedly due to begin within the next two weeks with Vodafone and France Telecom likely bidders.
Reuters cites unnamed sources as indicating information documents will soon be sent to bidders after a summer delay due to holidays and the departure of Yoigo’s CEO.
TeliaSonera has hired Deutsche Bank to oversee the sale of its 76.6% stake and hopes for a price of roughly €1 billion.
Yoigo is the smallest operator with 6% wireless subscriber share in what is arguably an unattractive market due to Spain’s economic woes.
However, Vodafone and France Telecom would likely be able to achieve better pricing and make savings by acquiring Yoigo in what is still an important market for both companies in revenue terms.
A bid from market leader Telefónica is not expected as it would likely be blocked due to regulatory concerns. The Spanish carrier is also engaged in a large scale debt restructuring programme, meaning it is unlikely to be considering acquisitions at this time
There was also speculation that Carlos Slim’s América Móvil would consider a bid, but this is now thought to be unlikely.
The remainder of Yoigo is held by Spanish construction groups ACS and FCC, which hold 17% and 3.4% of the operator and technology group Telvent with 3%.