MasMovil’s board has issued an opinion according to that a acquisition bid received from private equity firm KKR and aforementioned about the company’s search for bids by other possible buyers but it didn’t get any other competing offer compared to the KKR.
Previously in June, the board Spanish telecoms group had favored KKR’s $3 billion offer, Providence and Cinven, considering KKR’s offer beneficial for the company, which has surpassed the bigger rivals in the competitive telecoms market of Spain.
In the recent statement by board stated that some of the company’s shareholders had showed concerns related to the consortium of KKR, Providence and Cinven offers were too small in value. The company told it reconsidered the deal after one of the board members, Rafael Dominguez, holder 8.25% stake in the company believed the bid price is too low while said he is expected to vote against the deal.
MasMovil also had collaborated with Goldman Sachs and made a team for looking into competing offers but they found no any firm that showed significant interest that could have been equated to KKR by bidding higher or presenting any strategic alternatives.
Previously, Polygon who is the minority shareholder of MasMovil said the terms of the bid including the commitment of selling from company’s 30% stock holders is the reason no competing bid. While last month, the Spain’s market regulator also approved the KKR’s bid.