News

Three groups bid for 49% stake in Euskaltel’s broadband unit

Euskaltel.jpg

Euskaltel, the telco based in the Basque country of northern Spain, has three bids for a stake in its broadband network unit, according to reports.

The Expansión newspaper says that bids are from Fiera Capital, based in Canada, First Sentier Investors, based in Australia, and Infravia Capital Partners, based in France.

Euskaltel, which has expanded beyond its home market in the Basque country into the neighbouring regions of Galicia and Asturias, is spinning off the unit into a new subsidiary and wants to sell a 49% stake.

In September Euskaltel agreed with Spanish fibre optic operator Adamo to access its one-million-home, nationwide network. The agreement was confirmed with an initial term of five-years, renewable by mutual agreement, and can be extended to the additional 500,000 homes due to be connected by Adamo this year.

Euskaltel operates nationally via agreements signed with Orange and Telefónica. The agreement with Adamo will increase flexibility and efficiency in national network usage, positively impacting on the company's forecasts and bringing network management efficiencies.

Now the company wants to invest €364 million, says Expansión, in the broadband unit over the next three years — which is why it is seeking outside investment.

CEO José Miguel García said in September: “Our goal is to reach all towns and villages, even the most remote ones, and to help eliminate the digital divide in our society by offering the most advanced telecommunications services.”

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree