The French telecommunications company Orange provides a bid of € 13 per share, corresponding to 3.4 billion Euro
Chairman of Jazztel and largest shareholder with 14.48%, Leopoldo Fernández Pujal, agrees to sell for 13 €. Jazztel director, José Miguel García, and Secretary General José Ortiz, support the offer and have agreed to accept it. The deal is subject to regulatory approval, but it is not expected to cause a problem since Orange already without PUJAL shares have been accepted for 50.01% of the shares.
The trade off Jazztel shares were stopped at Madrid Stock Exchange Monday after the stock rose sharply by 12.6 per cent to the closing price of EUR 12,05. Jazztel shares have risen over 54% so far this year and the value has increased ten times in just 6 years. A large part of the success is attributed to Pujal who became president after the investment of over € 60 million in the company. He is now expected to get € 500 million for its stake. Pujal born in Cuba is previously best known as the founder of TelePizza, where he in 1999 sold his shares for around 300 million euros.
During last week TeliaSonera confirmed that there had been talks with the Jazztel owned spanish company Yoigo. Orange has now decided not to buy Yoigo, as this would put obstacles in the way of the permit to purchase Jazztel.
Jazztel is the provider that has grown fastest in the broadband market in recent years and has a very valuable network. The agreement means that Orange is now in second place in Spain on broadband.