According to sources familiar with the matter, Vodafone’s Spanish business is attracting takeover interest from potential buyers. The telecommunications company has reportedly been approached by both private equity and strategic suitors, although it is not currently running a formal sale process for the unit. Nevertheless, the company would consider offers at the right price. The Spanish unit is valued at more than $4 billion and has been shrinking due to competition from other carriers such as Telefónica, Orange, and Masmovil Ibercom.
Deliberations are ongoing, and there is no certainty that a sale of the Spanish operations will result. Vodafone’s former CEO, Nick Read, sought a merger in Spain last year but missed out when Orange and Masmovil agreed to combine there. The company has been under pressure to simplify its business and pursue deals to unlock value for investors and revive its falling share price.
Vodafone has faced significant obstacles in its efforts to simplify its business. While it has managed to sell smaller units in countries like Hungary and a stake in its mast unit, Vantage Towers, the company has struggled with transactions in larger markets. Vodafone missed out on a deal for its Spanish unit and also rejected an offer from French telecoms billionaire Xavier Niel for its Italian unit last year. Additionally, prolonged talks about a merger with Three UK have yet to be finalized.
Strategic investors, including occasional rivals such as Niel, Emirates Telecommunications Group Company, and Liberty Global, have acquired more than a fifth of Vodafone in the past year, raising questions about how they might influence the British group’s strategy.
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Author: Agency Staff
