MásMóvil sells 51 percent of the Euskaltel network

Euskaltel has signed a purchase/sale contract with Bidasoa Aggregator, a consortium of investors formed, mainly, by Asúa Inversiones, Beraunberri, Inveready and Onchena.

The new owner is committed to complementing the deployment of a new fiber optic network in 1.2 million homes on the footprint of Euskaltel's cable network located in the Basque Country, Asturias and Galicia.

This transaction does not include the backbone or transmission fiber network assets that continue to be wholly owned by the MásMóvil/Euskaltel Group.

The operation will allow accelerate the availability of fiber optic services for Euskaltel, R and Telecable customers in order to increase their level of satisfaction and user experience, and will contribute to the growth of these brands in their territories to continue leading the market on the Cantabrian coast.

Through this operation and once the deployment of the new fiber optic network is completed, 100% of the 2.3 million homes that make up the current footprint of the Euskaltel network will be FTTH and will be able to enjoy the most advanced telecommunications services.

MásMóvil/Euskaltel Group will continue to provide the services of operation and maintenance (O&M) de esta red, así como servicios de transmisión. Esta Netco prestará servicio a los clientes de Euskaltel, R, Telecable y otras marcas del grupo MásMóvil y dispone de un acuerdo para ofrecer sus servicios de fibra también a Orange España.

The MásMóvil group will obtain a total of about 580 million for the sale of 100% of EKT Cable. 500 million euros will be used to repay debt and Euskaltel itself will reinvest a portion to acquire a minority stake of 49%, thus maintaining a relevant commitment to the potential of the new Netco.