Iliad to acquire Play - what's next?

Iliad is acquiring Play, the largest MNO in Poland. It secures 40.2% from current shareholders and makes a public offer for the remainder. Iliad also operates in France and Italy and holds a large stake in Eir (Ireland). Founder Xavier Niel (through NJJ) owns operators in Switzerland, Monaco and Cyprus.

The details:

• Iliad acquires 40.2% controlling stake (incl Board majority) from Kenbourne (Novator, 20.1%) and Tollerton (Panos Germanos, 20.1%) at 39.00 PLZ/share
• other shareholders: NN/OFE 5.6%, free float 54.%
• launches public offer: 39.00 PLZ/share cash (100% equity value EUR 2.2b, EV EUR 3.479b = 6.8x EBITDA AL TTM = 9.9x OpFCF TTM pre synergies), premium 39% over 200918
• acceptance period 201019-201117, settlement & clsoing 201125
• to be financed from cash & debt, leverage to rise pro forma from 2.2 to 3.2
• to continue spinning off & selling its passive infrastructure;
• 'Through this acquisition, iliad will cement its position as a pan-European telecom player'
• Iliad becomes #6 telco in Europe based on mobile subscribers (behind Vodafone, DT, Telefonica, Orange, 3 Group Europe)

More acquisitions appear to be a matter of time. The values Iliad/Niel appears to seek:

• Mobile centric, with an eye on expanding into fixed.
• Maverick character.
• Growth opportunities from either market growth or market share growth.
• Can do without passive infrastructure.
• Efficiency, simplicity.
• Developing hardware and services in-home.

Candidates:

• Spain: MasMovil (being acquired currently by private equity)
• Netherlands: T-Mobile
• Belgium: Orange
• 3 Group Europe (CK Hutchison), except 3 Ireland
• Digi/RCS&RDS
• PPF