KKR, Cinven, Providence Seek to Jointly Take Over Masmovil

(Bloomberg) -- Three buyout funds are preparing a joint offer to take full control of Spanish carrier Masmovil Ibercom SA, according to people familiar with the negotiations.

KKR & Co., Cinven Ltd. and Providence Equity Partners LLC plan to offer slightly more than 22 euros ($24) a share for the Spanish phone and internet company, according to the people, who can't be identified as the talks are private. The bid could come as early as Monday, one of the people said. No decision has been reached and a deal may not happen. The negotiations were reported earlier by Spanish website El Confidencial.

The funds already have a presence in the Spanish telecommunications market. They would subsequently seek to delist Masmovil, one of the people said. It currently has a market value of about 2.5 billion euros.

Masmovil has disrupted the Spanish phone and internet market since becoming the country's fourth national mobile carrier in 2016 with the acquisition of the local assets of Telia AB. It's gained market share by putting pressure on bigger rivals with cheap, no-frills services.

The company has also fueled its growth through a combination of acquiring smaller rivals to expand its portfolio while also building its own fiber network. Masmovil has also relied heavily on wholesale deals with Orange SA to use its networks in those areas where its own presence is weak.

Press officers for Masmovil, Cinven, KKR and Providence declined to comment.

Providence is the second-largest shareholder in Masmovil itself, with a 9.2% stake, while Cinven owns closely held fiber-broadband operator Ufinet, which has a business partnership with Masmovil. KKR owns a 40% in Telxius, the phone-tower operator of Telefonica SA, Spain's largest carrier.

Masmovil's shares closed at 18.72 euros on May 29. They have surged 345% since June 21, 2016, when it announced the acquisition of Telia's assets. The company said earlier this year that it planned to start paying a dividend in 2021.