The sale of Avatel, a key operator in medium-sized towns, is moving forward with fewer candidates on the table. The entry of a majority partner in the company, which originated on the Costa del Sol, is currently being decided between Telefónica and the Spanish management firm Inveready. The number of contenders has decreased following the withdrawal of three international funds that were invited to participate in the process: PAI Partners, HIG, and SearchLight Capital Partners.
Avatel has become the fifth national operator after initiating a buying spree of small competitors in recent years. Due to this commercial profile, Avatel is positioned in the market as a very attractive player for operators interested in expanding their reach beyond major population centers.
The operation, valued at around €700 million, is being coordinated by the investment banking unit of BANCO SANTANDER, and it continues without a clear guarantee of success in the coming months. This situation suggests a capital increase by the current owners as the most immediate alternative, according to sources familiar with the operation.
Telefónica has publicly acknowledged that the merger between Orange and MásMóvil, already authorized by competition authorities, opened a window of opportunity from a competitive standpoint, although it has not made a significant purchase in years. Specifically, Telefónica stated before the summer, during a press meeting for the annual results presentation, that Avatel is on the market and that Telefónica is part of the market.
Telefónica and Inveready compete to purchase Avatel for around €700 million
