Orange to delist Jazztel after shareholders overwhelmingly back bid
Reuters
Published Jun 26, 2015 08:30AM ET
Orange to delist Jazztel after shareholders overwhelmingly back bid
By Julien Toyer
MADRID (Reuters) - French telecom group Orange (PA:ORAN) said on Friday it would take Spanish rival Jazztel (MC:JAZ) private after its $3.8 billion takeover was overwhelmingly backed by Jazztel shareholders.
Shares in Jazztel will stop trading after Aug. 13, Orange said. It has said that it plans to merge its Spanish unit and Jazztel and then list part of the merged company on the Madrid stock exchange.
With the purchase Orange will expand its presence in Spain several times over to reach 10 million households with its fiber optic network by 2016.
It said 95 percent of Jazztel shareholders had supported its offer of 13 euros per share, which was a 34 percent premium to Jazztel's average share price in the month before Orange made the offer last September.
The remaining 5 percent will now be forced to support the deal under a separate compulsory offer to be launched by Orange at the same price.
The French company hopes the deal will help it better compete with Vodafone (L:VOD) in the Spanish market after Vodafone acquired cable operator Ono last year.
Acquisitions are picking up pace in the European telecoms sector as operators seek to cut costs and increase market share at the same time, but EU Competition Commissioner Margrethe Vestager warned this month that mergers could result in higher bills for consumers and less innovative companies.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.