MasOrange shareholders are reportedly eyeing a possible IPO of the Spanish operator next year, in a bid to liquidate assets.

The network operator was established in 2022 after a €20 billion merger between Orange’s local subsidiary and MasMovil. The deal’s terms included a two-year lock-up period scheduled to expire in 2026, after which either party has the ability to initiate an IPO “if the conditions were right”, Orange told Financial Times (FT).

With the holding period’s expiry approaching, MasMovil’s primary stakeholders, private equity companies KKR, Cinven and Providence Equity Partners, are reportedly evaluating strategic options for the business including an IPO, though no definitive decisions have been reached. ​

In the case that an IPO is initiated, Orange will retain the option to acquire a controlling interest, providing an avenue for MasMovil’s major stakeholders to divest their holdings.

Kester Mann, director of consumer and connectivity at CCS Insight, told FT MasOrange’s performance is on track, suggesting investors might feel the time will be right to cash in.

An IPO could reinvigorate Europe’s subdued post-pandemic IPO market, offering investors a stake in a major telecoms entity at a time when buyout groups face a record backlog of unsold assets, added FT‘s report.

Earlier this year, MasOrange reached an agreement with Vodafone Spain to establish FibreCo, a joint fibre network company set to provide fibre-to-the-home (FTTH) access to approximately 12.2 million premises across the country.

With the deal on track to be completed by mid-2025, MasOrange will hold a 50 per cent stake in the new entity, Vodafone Spain will retain 10 per cent, while the remaining 40 per cent is expected to be sold to a financial investor.