Basque cable operator Euskaltel has closed the acquisition of Galician operator R.
Last week, Euskaltel issued more than 25.3 million new shares to help pay for the acquisition, raising EUR255 million. The issue was four times oversubscribed. The news of the acquisition was announced last July.
Euskaltel’s gamble paid off handsomely, as its shares rose to an all-time high of EUR11.33 last Friday, the day of the closing of the transaction.
“Today is a big day for Euskaltel and R. Merging both companies will enable us to grow and compete better in both our territories, and benefit clients, workers and providers,” said Alberto García Erauzkin, Euskaltel’s president.
“We are similar companies, we share values like being close to our customers, a strong presence at every step of the service and innovation. This is why we have decided to keep going with both separate brands, local structures and professional teams, as they’ve been key for success.”
The operator said that both companies will remain active under their own brand names and products wil also not be changed.