Masorange abolishes the board of the former MásMóvil and accelerates its reorganization | Companies

Masorange, the new operator arising from the merger of Orange Spain and MásMóvil, is accelerating the restructuring process after officially starting its operations at the beginning of this month of April. Thus, the company is already eliminating structures in this reorganization.

Among the changes underway, the company has decided to eliminate the board of directors of the former MásMóvil Ibercom, which was chaired by veteran director Eduardo Díez-Hochleitner, and had among its members Meinrad Spenger, CEO of Masorange, and six others. members (two for each of the large shareholder funds of the former MásMóvil, Cinven, KKR and Providence): Jorge Adiego, Jorge Lluch, Miguel Segura, Stefano Bosio, Cristina Serna and Robert Sudo, with Alberto Castañeda as secretary (Castañeda has passed to be secretary of the joint venture).

The company has appointed two joint administrators for MásMóvil Ibercom, the aforementioned Spenger and Ludovic Pech, financial director of Masorange.

The operator has decided that it did not make sense to maintain a board of directors in this subsidiary, whose members came only from MásMóvil, once it has become part of the corporate structure of Masorange, which already has its own board of directors, in This case is equal, given the 50% distribution of capital, with four representatives from Orange and another four from Lorca JVCo, the parent company of MásMóvil.

Masorange seeks to eliminate superfluous costs in a reorganization that seeks to improve management efficiency and lighten structures. As strategic plans, in general terms, the joint venture It expects to achieve synergies of 490 million euros, starting in the fourth year from the closing of the transaction, mainly through the rationalization of the fixed and mobile networks with the migration of customers, along with a clear integration plan.

Within this integration, the company could eliminate boards of directors and reduce the management structures of other subsidiaries. Under the corporate structure established after the integration, the parent company of the joint venture Lorca HoldCo and Lorca Telecom Bidco hang up. The companies Orange Espagne, Lorca Finco, Lorca Telecom Bondco and Kaixo Bondco Telecom depend on the latter, in addition to the aforementioned MásMóvil Ibercom. The latter have been used, to a large extent, as financial vehicles for different operations.

This same week, Orange Espagne announced the official change of identity of its sole partner, going from Kili Spainco Project to Lorca Telecom Bidco. The former Orange parent company in Spain has historically had a large board of directors, with group directors and independent members, and in the last stage it was chaired by Jean-François Fallacher, who has assumed the presidency of the board of the joint venture.

Lorca Finco, for its part, had a board of directors with six members, with the three funds being represented equally.

Díez-Hochleitner

In the new structure, Lorca Telecom Bidco maintains its board of directors, chaired by Díez-Hochleitner, and with Spenger as CEO. Among the members of the board of this subsidiary are the representatives of the shareholder funds of the former MásMóvil, along with Josep María Echarri, head of Inveready and a key man in the operator over the last few years, and Germán López, who has passed to occupy the position of Director of Operations of the new joint venture.

Díez-Hochleitner has had a long career in MásMóvil, in which he was an investor in its early stages, and went on to chair the board of directors in 2015, before the company’s great emergence, with the acquisitions of Yoigo and Pepephone in 2016, and the subsequent takeover bid launched by Cinven, KKR and Providence.

The manager, who has always had the trust of Meinrad Spenger, co-founder of MásMóvil, played a key role in the period in which the operator was listed on the Stock Exchange, going from the Mercado Alternativo Bursátil (MAB) to the Ibex 35 (MásMóvil is The only one startup in Spain that has gone through all the steps of the financial market). Among his tasks, Díez-Hochleitner promoted the company’s adaptation to governance and sustainability policies.

The executive has had a very intense activity in the field of investment. Among others, he is a founding partner of the firm Samaipata Ventures, with positions on the board of Gawa Capital Partners and Global Impact Funds Management.

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