Spain’s MasMovil sells majority stake in rural fiber network for $ 468 million, Telecom News, ET Telecom
The owners of Onivia – the Macquarie, Aberdeen and Daiwa funds – bought a 51% stake in MasMovil’s fiber-to-the-home (FTTH) network, which includes more than a thousand municipalities with less than 25,000 inhabitants, for 390 million euros ($ 467.77 million), a source close to the deal said.
“MasMovil will retain a 49% stake in the network, and Orange will also be a customer, leasing access to at least 750,000 homes,” the source told Reuters on Wednesday.
Onivia also has the option of purchasing an additional share of MasMovil’s network representing 100,000 households, potentially increasing the final payment for the deal, which was first announced last June but was only finalized this week.
The addition of this FTTH segment will complement Onivia’s predominantly urban fiber-optic assets while doubling the size of its global network to 2.1 million homes, the company said in a statement.
In developing its infrastructure, the neutral fiber optic operator Onivia appears to be following in the footsteps of the Spanish company Cellnex Telecom SA, whose voracious acquisition of mobile telephony towers has helped it gain recognition in the European market.
Spain’s highly fragmented and extremely competitive telecommunications sector is heading for consolidation, after suffering a series of mergers, the most recent of which is the acquisition by MasMovil of rival mobile operator Euskaltel for 3.5 billion euros, debt included.
MasMovil was itself deprived last year by a consortium of US funds in a € 3 billion deal.