Zegona to push ahead with Yoigo acquisition
21 June 2016 |
US investment company Zegona said it plans to push ahead with talks to acquire Telia’s 75% stake in Spanish operator Yoigo although its minority shareholders are yet to be in full agreement about the deal.
Zegona revealed that despite arriving at an agreement with Telia within the original exclusivity period and having fully agreed documentation and 100% underwritten financing, discussions with Yoigo’s minority shareholders have not led to a complete agreement.
In addition, Zegona said another bidder – believed to be Masmovil – is willing to “offer a price higher than that which Zegona considers to be fair and reasonable”. It added that the higher offer is conditional on due diligence, fully agreed documentation and the ability to secure significant financing.
Masmovil reportedly offered €700 million for all of Yoigo's debt and equity, in comparison to Zegona's offer of €550 million.
“Given the current uncertainty of this new bid and our expectation of greater clarity within a relatively short period, the board considers it is in the best interest of shareholders that Zegona remains engaged in the Yoigo transaction,” said the company. “It is our intention to progress this transaction as we continue to evaluate the many attractive opportunities for additional acquisitions across the broader European TMT landscape.”
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