Private equity firms KKR, Cinven, and Providence, along with former MásMóvil executives, have engaged Goldman Sachs to initiate talks with Orange regarding a potential exit from MasOrange, Spain’s leading telecommunications operator.
MasOrange’s shareholders are preparing to take advantage of the first official window they granted themselves to divest their stake in the company. According to financial sources, KKR, Cinven, and Providence — who jointly own 50% of the telecom group — have enlisted Goldman Sachs to explore a potential sale of their stake in the joint venture formed with Orange following the merger with MásMóvil just over a year ago. The transaction is expected to exceed €10 billion, including debt.
The investment from the private equity firms and former MásMóvil executives is held through Lorca Telecom, the vehicle that already relied on Goldman Sachs during the original acquisition of MásMóvil and the subsequent merger with Orange. MásMóvil, founded by Meinrad Spenger, was previously backed by prominent investors such as Gala Capital (Carlos Tejera), Key Wolf (José Eulalio Poza), Inveready (Josep María Echarri), and Onchena (Ybarra Careaga family). That initial deal, exclusively reported by El Confidencial on May 31, 2020, during the height of the pandemic, was valued at €5 billion including debt. The valuation later surged to €19 billion following the July 2022 announcement of the merger with Orange, which created the largest telecom operator in Spain by customer base.
Now, with the integration formally completed in March 2024, MasOrange holds a minimum valuation of €20 billion, including debt. Beginning in September, the two main shareholders — Lorca Telecom and Orange — must decide whether to continue their partnership or go separate ways, as the 18-month review period they agreed upon comes to an end. Available options include taking MasOrange public, one party buying out the other’s 50% stake, or — in an effort to push up the price — KKR, Cinven, and Providence selling their share to another consortium of investors aiming to drive further telecom consolidation in Europe.
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