31 July 2024
Zegona Communications
plc
Vodafone Spain and Telefonica
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 Telefónica de
España, S.A.U. ("Telefonica") (together the
"Parties") have signed a
confidential non-binding term sheet setting out the proposed key
terms to create a new fibre network company ("FibreCo Transaction").
The FibreCo Transaction will involve
Vodafone Spain and Telefonica creating a joint fibre network
company in Spain ("FibreCo"). This will cover
approximately 3.5 million premises 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. Telefonica is expected to retain majority
ownership and Zegona to retain 10%.
The new FibreCo will provide access
to the highest quality fibre optic network and support the rapid
adoption of new technologies, benefiting Vodafone Spain and
Telefonica customers. This network will be a benchmark for
sustainable development, meeting high ESG standards through energy
savings.
The combination of this new FibreCo
with Telefonica (3.5 million premises) and the recently announced
MasOrange FibreCo1 (11.5 million premises) will give
Vodafone Spain cost efficient access to extensive all-fibre
networks across Spain. These networks will deliver market leading
high-speed services with the most advanced technologies.
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 a new FibreCo in partnership with
Telefonica is another key milestone in our plan to transform
Vodafone Spain. This transaction fully complements the MasOrange
FibreCo we announced last week and gives Vodafone Spain guaranteed
access to future-proof networks with attractive economics. Moving
Vodafone Spain to these new FibreCo structures is expected to
create significant incremental value for all Zegona
stakeholders."
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
Telefonica
Telefonica is one of the largest
telecommunications service providers globally. It offers fixed and
mobile connectivity, as well as a wide range of digital services
for residential and business customers. With around 388 million
customers and more than 100,000 employees, Telefónica operates in
Europe and Latin America. Telefonica is a listed company with its
shares trading on the Spanish Stock Exchange and those of New York
and Lima.
Note 1: On 24th July 2024,
Zegona
Communications plc announced Vodafone ONO, S.A.U. and
MasOrange, S.L. had signed a confidential non-binding term sheet to
create a joint fibre network company covering c.11.5 million
premises in Spain