Operators launch into finance: MásMóvil will offer loans of up to 60,000 euros

MasMovil breaks into the consumer credit sector, which will reach up to 60,000 euros for its clients through MoneyGo. The operator, which controls the Xfera Consumer Finance company in which Cetelem also participates, enters into new financial services, which will include another service such as debit cards foreseeably before the end of the year .

The operator will function as a “credit financial institution, regulated and supervised by the Bank of Spain”, explained Alberto Navarro, head of Xfera. From MasMovil it is also recognized that “it is on the table to request a banking license”, a step that Orange has already taken.

For now, the operator will offer basic services such as a current account. Telefonica, with Movistar Money, and Orange, with Orange Bank, are also present in the business of financial loans. Meinrad Spenger, CEO of MasMovil, recalled the wide range of services offered by the teleco which leads (“energy, consumer finance, content, credit cards …”, as reviewed in this Wednesday’s presentation). Recently, at the beginning of this month of February, the company announced the acquisition of a controlling stake in EnergÃa Colectiva, which operates under the Lucera brand, in a new purchase to strengthen its energy services. Lucera marketer was already partner of MásMóvil for the first electricity services of the Yoigo and Pepeenergy brands.

To compete in loans, MásMóvil emphasizes that it provides a effective rate or APR of 5.06%, which would be below those of entities such as Santander or CaixaBank and rivals such as the aforementioned Movistar Money and Orange Bank, according to the yellow telco. However, the credit ceiling, which reaches 60,000 euros, well above the sum provided by other competitors.

Runran in the sector

Regarding the consolidation rumors, with rumors about negotiations with Vodafone Spain to unify both businesses, Spenger has assured that MásMóvil is not “in conversation with joint venture with anyone “, although he has not denied the possibility of using other formulas to consolidate the business.

Spenger has further explained that they felt “Disappointed” with prices of upcoming 5G spectrum auction, a bid that should be carried out at the end of March or the beginning of April, and that would start at a price of 1,170 million euros. According to MásMóvil’s calculations, the price is “twice as high as the final price in Portugal”, if the size of both markets, one larger than the other, were equal in size. “Exit prices are higher than in other countries, when we must all work to support the driving sectors of the economy, “said Spenger, who also believes that” deployment obligations [de infraestructuras de red] they are very high and should be more reasonable. ”

The new owners after the takeover bid

MásMóvil has underpinned these months a takeover bid by three international investment groups, KKR, Cinven and Providence, which launched a public acquisition offer for all the operator’s shares, valuing the company at 2,963.57 million euros.

The operation has been carried out through the company Lorca Telecom BidCo, made up of these three venture capital funds, and is supported by guarantees from Barclays, BNP Paribas and Morgan Stanley. With MasMovil’s debt of 1,800 million euros, the tender offer covers a sum of more than 4,800 million euros. Spenger, as well as the main staff of the board, remain in the management of the company.

The operator has been reinforced with different purchases in recent years: Pepephone for 158 million, Yoigo for 612 million, Llamaya for 41.7 million and Lebara for 55. Recently, the company seems focused on a diversification of its businesses and in the study of consolidation options to concentrate the competitive telecommunications market in Spain.