The eventual purchase of Avatel by Telefónica for one billion would be a "defensive" move, according to Sabadell

The Saudi STC would also be considering the acquisition of the teleco

MADRID, 11 Mar. (EUROPA PRESS) -

Analysts at Banco Sadabell consider that the potential purchase of Avatel by Telefónica, an operation that would be valued at around 1,000 million euros, would be a "defensive" move with a "low impact."

"Following the approval of the merger between Orange and MasMóvil by the European Commission, we believe that rumors about potential consolidation movements in the sector are to be expected to increase. The operation for Telefónica would have a defensive meaning, given that Avatel is wholesale client, but a low impact given the size of the operation," the Sabadell analysts highlight.

In addition to Telefónica, the Saudi STC - which last September gained ownership of Telefónica - would also be analyzing the purchase of Avatel Telecom independently, according to information published by the newspaper 'El Economista' this Monday.

"Avatel is currently a wholesale client of Telefónica and its consolidated revenues in 2022 (latest information available) reached 265 million euros, with an Ebitda (gross operating profit) of 91 million euros," the financial entity highlights in its report.

Europa Press has contacted Telefónica, STC and Avatel and none of the three companies have wanted to comment on this potential operation.

The possible purchase of Avatel would occur in a context in the Spanish telecommunications sector that in recent months has experienced several significant movements, such as the aforementioned merger between Orange and MásMóvil and the purchase of Vodafone's business in Spain by the British venture capital manager Zegona for 5 billion euros.

Added to this is the return of the State to Telefónica after last September STC acquired 9.9% of the capital of the operator chaired by José María Álvarez-Pallete, specifically, through 4.9% in direct shares and 5% in financial derivatives, the latter percentage that still has to be approved by the Government to materialize.

In this context, last December the Executive ordered the State Society of Industrial Participations (SEPI) to acquire up to 10% of Telefónica to counteract the entry of STC into the company, considered strategic.