MásMóvil has approved a broad reduction of its corporate structure. In this case, the company has decided to abolish nearly fifteen subsidiaries, included in the group through the former There+, acquired by the operator in 2020 (some of the purchase options for subsidiaries were exercised during 2021, as is the case of Ahmas Comunitelia).
Under this movement, the company Spotting Brands Technologies has absorbed the companies Red LTE MM, Áímas Comunitelia, Alma Telecom, Blu So Easy, Áímas Europa Network, Wimax Inline, Schedia Ingeniería, Astronetz Poniente, Áímas Next Almería, Rebeloak, Econectia Uniasser, Oriol Fiber, TV Alcantarilla Communications, Ahimas Nash and Ahimas Vinfortel.
All these companies had as sole administrator Meinrad Spenger, CEO of MásMóvil, who holds that position at Spotting Brands Technologies.
Company sources point out that the movement is a corporate simplification of the subsidiaries of Ahi+. Spotting Brands Technologies, whose sole shareholder is Xfera Móviles, parent company of Yoigo, already absorbed the company Store Comercial de Telecomunicaciones at the end of 2021.
These companies correspond, to a large extent, to the different local operators that Aí+ had, especially in Andalusia, Madrid, Castilla La Mancha, Murcia and the Valencian Community, where it had carried out a wide geographical expansion.
In this way, the MásMóvil group reduces its corporate perimeter, which had not stopped growing in recent years, as a result of the various acquisitions carried out by the group, such as the purchase of Euskaltel or the aforementioned Ali+, or with the launch of new businesses.
In the annual financial report for 2020, the year prior to the takeover bid for the aforementioned Euskaltel and in which MásMóvil passed into the hands of the Cinven, KKR and Providence funds, Lorca JVCO, the operator’s British parent company, indicated that it had more than 40 subsidiaries, the majority in Spain.
However, with the takeover bid for Euskaltel, carried out through the company Kaixo Telecom, the subsidiaries R Cable and Telecable Telecomunicaciones and EKT Cable y Telecomunicaciones were also incorporated.
Now, with this simplification, the telecom would be looking for a reduction in costs, in addition to facilitating management and speeding up decision-making.
These changes come in parallel with the negotiation process between MásMóvil and Orange for their possible merger of their businesses in Spain. The exclusive contacts were announced on March 8, and they expect to reach an agreement during this second quarter of the year.
In recent times, the Orange group has also eliminated some of its divisions in Spain. For example, the teleco approved in mid-2021 the dissolution of República de Comunicaciones Móviles, within its brand reduction strategy, which also affected Amena. The assets of this company became part of Orange España Virtual, the parent company of the Simyo brand.
In this line of changes, Orange Espagne also announced in September last year the segregation of its mobile phone tower assets, which came under the newly created company Totem Towerco Spain. This business, whose operations depend on Totem’s parent company in France, has been left out of the possible merger with MásMóvil.
If Orange and MásMóvil are integrated, the new group will become the largest operator in Spain in mobile telephony and fixed broadband customers, with a valuation of 19,600 million euros.
In any case, the process is still going to be delayed. If there is agreement, which should come during this quarter, the transaction will not be closed before the second quarter of 2023, if it receives the approval of the competition authorities, presumably from the European Commission.
Increase. Lorca JVCO, the British parent company of MásMóvil, closed 2021 with a nominal share capital of 2,051 million shares, almost 11% more than in the previous year. The increase is a consequence of the capital increase approved by the company last December to capitalize a set of loans it had with shareholders. From the company it is pointed out that it is a statement of the issued capital of Lorca JVCO, which the commercial registry usually does on an annual basis, shortly after the end of each year, collecting the modifications made, and has nothing to do with the operation of Orange .
loans. Lorca JVCO executed a capitalization of different loans granted by the main shareholders, for an amount of 200 million euros. The partners decided to waive the return of these credits and chose to convert them into new shares. Shareholder loans to the company were granted in September 2020, following the takeover bid by Cinven, KKR and Providence. The loans, for an amount of 470 million, were intended to provide short-term financing to the company to meet its liquidity needs.