Minority Masmovil shareholder Polygon Global Partners confirmed its intention to vote against a takeover bid for the operator, reiterating criticism on the valuation of the business and levelling various accusations at the board of directors.
In its latest letter to Spanish stock market regulator Comision Nacional del Mercado de Valores, the investor said the €3 billion bid [1] by Lorca Telecom BidCo undervalued Masmovil and did not allow shareholders to “sell at an equitable price”.
Polygon Global Partners also slated conclusions of a valuation report compiled by PricewaterhouseCoopers, detailed in the offer prospectus, noting it overstated the operator’s required capex outlay in 2021 and beyond.
Alongside concerns on the offer price, the shareholder repeated savage criticisms of the Masmovil board [2], who are in favour of accepting the offer, accusing them of failing to adequately address its questions on potential conflicts of interest.
The company did not divulge the size of its stake in Masmovil in its letter, though Spanish business newspaper El Confidencial estimated it at just over 1 per cent.
Polygon Global Partners is not the only critic of the deal with fellow minority investor AllianceBernstein raising similar concerns [3] in the wake of the deal’s announcement.
Continued opposition from Polygon Global Partners comes days after El Economista reported Lorca Telecom BidCo planned to continue Masmovil’s current strategy following its proposed acquisition, and had no plans to make changes impacting the workforce within its first 12 months in charge.
[1] https://www.mobileworldlive.com/featured-content/home-banner/masmovil-board-backs-e3b-takeover-bid
[2] https://www.mobileworldlive.com/featured-content/top-three/masmovil-shareholder-ups-heat-over-buyout-bid
[3] https://www.mobileworldlive.com/featured-content/top-three/masmovil-stakeholder-slates-takeover-offer
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