Orange launched a public bid to acquire Jazztel, a network operator offering broadband and triple play services in Spain. The offer of 13 euros per share in cash represents a premium of 34% compared to where the stock has been trading. The price of 100% of Jazztel’s capital amounts to 3.4 billion euros.
Orange said the acquisition would make it the second biggest fixed-line broadband operator and one of the most dynamic players in the mobile segment in Spain. Orange estimates synergies for the combined entity of up to 1.3 billion euros, in particular thanks to savings in operational expenditure and investments in networks.
