TeliaSonera is in exclusive talks with UK-based Zegona Communications about the sale of its Spain-based mobile operator Yoigo.
The Scandinavian operator, which has a 77 percent stake in Yoigo, has been looking to offload the company for several years without success.
The operator is the fourth largest in Spain and rival Jazztel was looking at an acquisition before it was acquired by Orange last year.
Revenues at Yoigo grew over five percent in 2015.
Zegona, which was set up by former Virgin Media and Liberty Global execs Eamonn O’Hare and Robert Samuelson last year, confirmed it had no agreement in place with Yoigo’s other stakeholders.
The company would look to join Yoigo with Spanish cableco Telecable, which it acquired for €640 million last August.
The deal was Zegona’s first as it looks to deliver on its “Buy-Fix-Sell” strategy in the European telecoms space.
Zegona had revenues of £53 million last year, with earnings of £21.5 million
However, it made an operating loss of £7.7million.
Eamonn O’ Hare, Chairman and CEO of Zegona said: “As we look out across the European TMT landscape, we continue to see the dynamic forces of consumer consumption, industry consolidation and convergence creating many attractive opportunities for additional acquisitions.”
Last week, the company appointed Menno Kremer, Executive Director of Goldman Sachs TMT Banking Group, as its new Investment Director.
Source: http://www.eurocomms.com/industry-news/11444-teliasonera-zegona-enter-exclusive-talks-on-yoigo