KKR, Cinven, and Providence, now co-owners of MasOrange with Orange, are contemplating an initial public offering (IPO) for the newly formed mobile entity as early as next year, according to sources cited by the Financial Times. This follows the nearly €22 million merger of Orange and MasMovil’s Spanish operations, finalized in 2024 after overcoming significant regulatory hurdles.
The merger, which reduced the number of mobile operators in Spain from four to three, was approved after MasMovil agreed to transfer spectrum to Digi Spain, the country's largest mobile virtual network operator. As part of the merger agreement, both Orange and MasMovil can initiate an IPO after a two-year grace period, which will conclude in April 2026.
KKR, Cinven, and Providence acquired MasMovil in 2020 for approximately €5 billion and are now looking to capitalize on MasOrange’s robust performance. In 2024, MasOrange reported revenues of €7.388 billion, marking a 1.5% increase from the previous year. Additionally, EBITDA rose by 10.8% to €2.803 billion, with the company already realizing about €120 million of the anticipated €500 million in cost savings from the merger.
These savings are projected to exceed €300 million this year. While no formal decision has been made regarding the IPO, if it proceeds, it could allow Orange to buy out the private equity firms, thereby gaining a controlling stake in MasOrange.
In related developments, MasOrange and Vodafone are preparing to launch a joint venture focused on a fibre network, which has attracted considerable investor interest. Reports indicate that the companies have received several non-binding offers for a 40% stake in the venture, with around ten potential investors currently in negotiations.
The joint venture is expected to cover over 12 million premises and will be formally established later this year. For ongoing updates in the telecom sector, readers are encouraged to subscribe to the publication's newsletter, which is distributed three times a week.
In other news, Quickline is set to expand Yorkshire’s Project Gigabit rollout, while VOX Solutions emphasizes the need for telcos to adapt in the age of AI. Additionally, Huawei is introducing a range of new solutions at MWC 2025, marking the onset of the AI era.
