Cinven, KKR, and Providence Equity Partners are exploring an exit from MasOrange, their Spanish telecoms joint venture with Orange SA, in a potential deal that could exceed €5bn ($5.9bn), according to Bloomberg sources familiar with the matter.

The private equity trio owns a 50% stake in MasOrange, formed through the €18.6bn merger of MásMóvil and Orange Spain in 2022. The remaining 50% is held by Orange, which is reportedly considering a partial or full buyout, with an indicative valuation closer to €4bn. The discussions are at a preliminary stage, and no final decision has been made.

The consortium originally acquired MásMóvil in 2020 for €3bn before merging it with Orange’s Spanish operations to create the country’s largest telecoms operator by customer base.

Alongside a potential sale to Orange, the sponsors are also weighing a public listing on the Spanish stock exchange. Under the current joint venture terms, either party may initiate an IPO following a two-year lock-up period, which expires in 2026. However, sources suggest an IPO could come as early as next year, depending on market conditions.

The talks come amid persistent structural challenges in the Spanish telecoms market, including low pricing, heavy infrastructure costs, and intense competition. These conditions have driven consolidation across the sector as operators seek scale and improved margins.

MasOrange is also a key participant in a national fibre joint venture with Zegona Communications, which is evaluating a sale of a 40% stake to third-party investors. According to earlier reports, a ratchet clause linked to Vodafone Spain’s performance may grant incoming investors additional equity if future revenues fall short of expectations.

If successful, the deal would mark one of the largest private equity monetisations in the European telecom space in recent years. All parties involved declined to comment.

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