Spanish trade authority approves Orange offer to acquire Jazztel

DetailsEditor | 27 May 2015

In a huge boost for the telco giant, the Spanish Securities Commission (CNMV) has authorised Orange's voluntary cash tender offer for the acquisition of fellow operator Jazztel.

Through the transaction, Orange aims to create the second largest fixed-line broadband operator in Spain, with a particular focus on mobile offerings and accelerating the movement of its customers towards what it calls 'convergent offers'.

Orange's initial offer was made conditional on it obtaining all competition clearances from the relevant authorities, a condition satisfied on 19 May 2015, when the European Commission confirmed the approval of the proposed deal, subject to certain remedies.

The CNMV -approved offer will be open from 28 May to 24 June 2015 and covers all of Jazztel's shares, enabling shareholders of Jazztel to receive €13 euros per share in cash, valuing the entire acquisition at €3.4 billion. That said, the offer is conditional on shareholders of Jazztel holding in aggregate at least 50% plus one share of the maximum theoretical share capital irrevocably accepting the offer. Orange has already secured irrevocable commitments to accept the offer from shareholders representing 14.804% of the issued share capital of Jazztel.