Andorra Telecom obtains capital gains of 16.2 million euros from the sale of 1.8% of the shares of MASMOVIL
Andorra Telecom has implemented the disinvestment of part of the shares of the MASMOVIL company. In total, 1.8% of the Spanish operator’s bonds have been sold successfully.
The sale closed at an average price of 64 euros per share, a price which has increased in value by 229% in comparison with the acquisition price. With this operation, Andorra Telecom has increased its capital by more than 16 million euros. The Andorran Telecommunications company maintains 0.89% of its capital in MASMOVIL, currently valued at a market price of just over 11 million euros, as Andorra Telecom continues to place its trust in the good performance of the company and its management team.
The Minister of Land Use Planning and President of the Board of Directors of Andorra Telecom, Jordi Torres, explained the transaction was finalised late last week, with interest expressed by three top international investor groups, representing "a great opportunity" to make capital gains.
In July 2016, Andorra Telecom invested a total of 10.5 million euros, giving it a 2.7% share of the company, and was the first international operation for the Andorran company. The bonds were purchased at a unit retail price of 19.5 euros, a figure that has multiplied by 3.3 at the time of the sale.
The purchase of the shares was confined to increase MASMOVIL’s capital in order to finance the acquisition of Pepephone and Yoigo.
Foreign investment forms part of the strategic map of the company's commitment to new activities and the opening of new markets to offset the fall in revenue from roaming. Torres explained that Andorra Telecom will continue analysing the market in order to identify new investment opportunities.
