Euskaltel closes buyout of fibre operator R
Juan Fernandez Gonzalez
| 09 October 2015
Euskaltel has concluded the acquisition of regional fibre operator R for €1,190 million, €35 million more than initially agreed.
Euskaltel, which is immersed in a period of expansion, including recently going public, will own 100% of R's stocks, 70% bought from Rede Brigantium and 30% from Abanca. The operation includes the nearly €300 million of debt accumulated by the Galician fibre-to-the-home (FTTH) company.
Now, R, which will keep its brand and a certain independency within its regional market, will launch new stock, of which former shareholder Abanca intends to buy for €81 million.
The deal has to be approved by the board of shareholders, but no opposition is expected. The Comision Nacional de los Mercados y la Competencia (CNMC), Spain's competition watchdog, also has to green-light the agreement.
On a commercial level, Euskaltel will now own over 725,000km of fibre optic cable serving telecom services including pay-TV and broadband to some 715,000 customers.