Original article Total Telecom:Read More
News
KKR, Cinven, and Providence – now joint owners of MasOrange alongside Orange – could fully exit the newly formed mobile giant
According to sources speaking to the Financial Times, private equity firms KKR, Cinven, and Providence are considering launching an initial public offering (IPO) of newly formed MasOrange as early as next year.
The almost €22 million merger to combine Orange and MasMovil’s Spanish operations was agreed in 2022. The deal, which reduced the number of mobile players in the Spanish market from four to three, faced considerable regulatory scrutiny, much of which was allayed by MasMovil handing over spectrum to Spain’s largest mobile virtual network operator, Digi Spain. The deal was finally approved in 2024, with the merger formally completed shortly after.
As part of the deal, both Orange and MasMovil have the right to initiate an IPO process after a two-year grace period. This deadline will be reached in April 2026.
KKR, Cinven, and Providence, which purchased MasMovil in 2020 for roughly €5 billion, have reportedly been looking to “cash out some of their assets” based on MasOrange’s strong performance.
MasOrange reported revenues of €7.388 billion in 2024, a 1.5% increase on the previous year. EBITDA also increased 10.8% to €2.803 billion, with the newly merged operator saying it had already achieved around €120 million of the €500 million in synergistic cost savings expected from the deal.
Related savings are expected to increase to over €300 million this year.
Sources note that no formal decision has been made on the IPO, but if it does proceed it would present an opportunity for Orange to buy-out the private equity trio and so gain a controlling stake in MasOrange.
In related news, MasOrange and Vodafone’s prospective fibre network joint venture is already drawing significant interest from investors. According to reports, the companies have already received a number of non-binding offers for a 40% stake in the business, with 10 possible investors rumoured to be in negotiations over bids.
The joint venture will be formally created later this year, with fibre footprint covering more than 12 million premises.
Also in the news:
Quickline to extend Yorkshire’s Project Gigabit rollout
‘Adapt or die’: VOX Solutions’ message to telcos in the age of AI
Huawei’s ushers in the AI era with raft of new solutions at MWC 2025