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MasOrange Private Investors Consider IPO Amid European Market Revival

Private equity investors of Spanish telecom giant MasOrange are exploring an initial public offering (IPO) next year as buyout groups seek to offload some of their assets. If pursued, the listing could provide a much-needed boost to Europe’s IPO market, which is slowly recovering from a post-pandemic drought.

MasOrange and Its Origins

MasOrange, Spain’s largest mobile network operator, was formed in a nearly €20 billion merger agreed upon in 2022 between French-owned Orange España and private equity-backed MásMóvil.

Under the terms of the merger agreement, both parties have the option to initiate an IPO after a two-year lock-up period, which expires in April 2026.

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Preliminary IPO Discussions

According to sources familiar with the matter, MásMóvil’s owners—KKR, Cinven, and Providence Equity Partners—have begun early-stage discussions regarding possible options for the business. These options include a potential IPO in Spain as early as next year.

However, sources emphasize that no final decision has been made.

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Potential Impact on European IPO Market

An IPO of MasOrange would serve as a catalyst for Europe’s IPO market, which has been struggling with record levels of unsold private equity assets. The post-pandemic recovery has been slow, leading buyout firms to hold onto investments longer than expected.

If the IPO proceeds, Orange retains the right to acquire a controlling stake in MasOrange at the IPO price, providing an opportunity for KKR, Cinven, and Providence to exit their investments.

Investor Sentiment and Market Timing

According to Kester Mann, Director of Consumer and Connectivity at telecom consultancy CCS Insight, MasOrange’s strong performance could make now an attractive time for investors to capitalize on their holdings.

“Given the company’s trajectory, investors may see this as the right moment to monetize their stake in MasOrange,” Mann stated.

Orange has confirmed that the shareholder agreement allows an IPO to be initiated after April 2026 “if market conditions are suitable.” MásMóvil, MasOrange, KKR, and Cinven declined to comment, while Providence did not immediately respond to requests for comment.

MásMóvil’s Private Equity Ownership

MásMóvil was acquired by KKR, Cinven, and Providence in 2020 at a €5 billion valuation, when it was Spain’s fourth-largest telecom operator.

MasOrange’s Fiber Optic Expansion Plans

In addition to IPO discussions, MasOrange is looking to sell a stake in a new fiber-optic company, which was launched in January through a partnership with Vodafone Spain.

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  • The new company aims to build a network covering over 12 million premises.

  • MasOrange will hold a 50% stake, Vodafone Spain will own 10%, and a new financial investor will acquire 40%.

  • The deal is expected to be finalized in the first half of 2025.

Conclusion

While still in early stages, the potential IPO of MasOrange could mark a significant development in Europe’s telecom and investment sectors. As discussions continue, investors and industry analysts will be closely monitoring market conditions and MasOrange’s next strategic moves.

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