Spanish company Telefónica is considering the acquisition of Digi Communications (BVB: DIGI) of Romania, active at home but also on the markets of Italy and Spain, in a deal that could significantly change the European telecommunications market, according to Ziarul Financiar, citing Spanish publications Mundo Plus and El Economista.
The integration of the Romanian operator could help the company regain its leading position in the domestic market, lost after the merger between Orange and MásMóvil, and also consolidate its expansion outside Spain.
If the deal were to materialise, Telefónica would move from operating in three countries (Spain, Germany, and the United Kingdom) to a direct presence in up to seven European markets, writes the newspaper MundoPlus.
According to the publication El Economista, the acquisition of Digi is one of the options considered by Telefónica in its growth strategy through mergers and acquisitions.
The estimated value of the transaction would be approximately EUR 3.8 billion, an amount that includes EUR 1.8 billion of debt and a 20% premium to the current value of Digi shares.
The company, with legal headquarters in the Netherlands and coordinated operations in Romania, is controlled by entrepreneur Zoltán Teszári through the company RCS Management, and operates, in addition to Romania, also in Italy, Portugal, and Belgium.
With this acquisition, Telefónica would strengthen its position in the Spanish market, where Digi has become a formidable competitor, with 9.6 million customers and an annual growth of over 20%.
At the same time, the group would add four new important European markets, which would strengthen its ambition to become a truly pan-European operator.
The move would also have a defensive strategic role: it would eliminate the most aggressive rival in the Spanish market and would allow Telefónica to control a company that currently uses its infrastructure in many regions.
iulian@romania-insider.com
(Photo source: Digi)
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