Operator group Orange said Tuesday it has made a cash offer for 100 per cent of Spanish carrier Jazztel, to the tune of €3.4bn.

The acquisition would create the second biggest fixed line broadband operator and one of the most dynamic players in the mobile segment in Spain, accelerating Orange’s plans to deliver convergent offers.

The offer is conditional on the acceptance of at least 50.01 per cent of Jazztel’s capital, and the lead shareholder, Leopoldo Fernandez Pujals, who holds 14.5 per cent of the capital, has made a commitment to participate in the offer. Other executive members of Jazztel’s Board of Directors, José Miguel Garcia Fernandez, CEO, and José Ortiz Martinez, General Secretary, have also agreed to the offer.

According to Orange, Jazztel, as a major player on the Spanish telecom market, is one of the most dynamic competitors in the triple play and mobile services segments. This operation will generate estimated global synergies for the combined entity of up to €1.3bn, particular thanks to savings in operational expenditure and investments in networks.

The offer will be subject to the shared jurisdiction of the Spanish Securities Commission and the UK Takeover Panel on Takeovers and Mergers in the UK. The UK Takeover Panel has shared jurisdiction with the CNMV on the basis that Jazztel has its registered office in the UK.

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