Digi hits all-time high on the stock market thanks to the merger of Orange and MásMóvil | Companies

Digi store in Plaza Norte 2 shopping center.

Digi shares rose 1.49% this Wednesday on the Romanian stock market to 47.60 euros, having traded during the session at 47.80 euros, a new yearly high. Since the beginning of January, securities have risen in price by almost 9%, and over the past year they have accumulated gains of more than 45%. Digi’s market capitalization was 4.690 million Romanian lei (almost 945 million euros).

The increase comes after the European Commission approved yesterday the €18.6 billion merger between Orange and MásMóvil, which will mean Digi will move from fifth to fourth place in the national operator.

The telecommunications company is also looking to strengthen its position by acquiring excess assets or Facilities on a merger that includes the acquisition of various mobile phone spectrum concessions from the former Yoigo, owned by MásMóvil, for an amount of 120 million euros with a conditional option of 20 million. Blocks of the 1800 MHz, 2100 MHz and 3500 MHz bands are included in operation.

In addition, in the future, Digi will have the opportunity to create a national roaming with Orange, including all mobile technologies including 5G. The Romanian operator has based its growth in Spain on wholesale agreements, both fixed and mobile, with Telefónica. Digi will therefore have the option to renegotiate its contracts with Telefonica, which expire in 2026, or switch providers to start using the Orange network.

Digi plans to invest around €2 billion over the next seven years in Spain, which has established itself as the second-largest market in terms of revenue, behind only Romania.

An operator made strong by aggressive tariffs budgetended the third quarter of 2023 with 6.1 million lines in Spain, of which more than 1.24 million were fixed broadband, especially fiber, where the company is advancing its own rollout.

In the first nine months of 2023, the Romanian telecommunications company, which has led the field of portability in the last two years, increased its business in the Spanish market by 30.6%, to 465.7 million euros.

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