24 July 2024
Zegona Communications
plc
Vodafone Spain and MasOrange
agree terms to create a joint FibreCo
Zegona Communications plc (LSE: ZEG)
("Zegona") is pleased to
announce Vodafone ONO, S.A.U. ("Vodafone Spain") and MasOrange, S.L.
("MasOrange") (together the
"Parties") have signed a
confidential non-binding term sheet setting out the proposed key
terms for a national network sharing agreement (the "Proposed
Transaction").
The Proposed Transaction will
involve Vodafone Spain and MasOrange creating a joint fibre network
company ("FibreCo"). This
will cover approximately 11.5 million premises across Spain and
will provide fibre access services to both companies within this
footprint. The initial ownership split of the FibreCo between the
Parties will be based on their customer numbers within the
footprint. The Parties plan to bring a third-party financial
investor into the share capital of the new company, with the
ownership split post this investment expected to be 50% MasOrange,
40% financial investor and 10% Vodafone Spain.
The new fibre company will benefit
Vodafone Spain and MasOrange customers, as well as the Spanish
market as a whole. It will guarantee access to the most modern
fibre optic network, offering best-in-class quality, and enabling
the rapid adoption of new technologies, while stimulating
investment and innovation. This network will become a benchmark for
sustainable development, meeting high ESG standards thanks to
energy savings.
The Proposed Transaction is subject
to final agreement between the Parties and any required regulatory
approvals.
Eamonn O'Hare, Chairman and CEO of
Zegona, commented "Creating this new FibreCo in partnership with
MasOrange is a key part of our plan to transform Vodafone Spain. It
will deliver a highly efficient fibre infrastructure for our
customers with leading fixed line technology which will be at the
forefront of the industry. The Proposed Transaction is
expected to create significant incremental value for all Zegona
stakeholders. We will have more news to share as we progress
the transaction to completion."
For
further information contact:
Lulu Bridges / Katie Hopkins /
Ruairi Millar
Tavistock
Tel: 020 7920 3150
Zegona@tavistock.co.uk
About
Zegona
Zegona was established in 2015 with
the objective of investing in businesses in the European
Telecommunications, Media and Technology sector and improving their
performance to deliver attractive shareholder returns. Zegona is
led by former Virgin Media executives Eamonn O'Hare and Robert
Samuelson.
On 31 May 2024, Zegona completed the
100% acquisition of Vodafone Spain for €5.0 billion.
About Vodafone
Spain
Vodafone Spain is a national
provider of fixed, mobile and TV services in Spain, serving
consumer, business and public administration customers. It was
acquired by Zegona in May 2024.
About
MasOrange
MasOrange, a 50:50 joint venture
between Orange Spain and MásMóvil, started operations in March 2024
and is currently the leading player within the Spanish telecoms
market by number of customers.