Jazztel shareholders back Orange's IPO
DetailsJuan Fernandez Gonzalez | 29 June 2015
Continuing the telecom market consolidation in Spain and Europe in general, Jazztel shareholders have overwhelmingly backed Orange's initial public offer (IPO) to acquire the company.
Spanish stock market regulator Comisión Nacional del Mercado de Valores said that shareholders representing 94.75% of Jazztel's total share of capital have accepted Orange's offer of €13 per share, representing a total disbursement of €3.18 billion for Orange, the settlement of which is expected on 1 July 2015.
The squeeze-out conditions detailed in the tender offer prospectus have therefore been met, enabling Orange to acquire the remaining 5.25% of Jazztel's share capital at a price of €13 per share, the same price as the offer. The deal will be affected in mid-August 2015 and will represent an additional disbursement of €176 million.
Jazztel's shares, which were taken off Spain's Ibex 35 last week, will be delisted automatically from the Spanish stock exchanges at the end of the squeeze-out period.
The transaction will enable Orange Spain and Jazztel to build a converged pay-TV, Internet and mobile communications provider. 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 multiple play offers.