Vodafone Group has officially finalized the sale of its Spanish division to Zegona Communications for EUR 5 billion, ending the UK company’s direct operations in Spain, a process that began in late 2023.
The transaction includes EUR 4.1 billion in cash and EUR 900 million in redeemable preference shares. Both Vodafone and Zegona Communications highlighted that the enterprise value exceeded several earnings metrics for the year ending September 2023 in their respective statements.
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Zegona Communications previously announced that José Miguel Garcia, the former CEO of Euskaltel, will lead the Spanish business, noting that this appointment reunites “a team that has a proven track record of highly successful operational transformations in Spanish telecoms.”
Vodafone stated that it would maintain a presence in Spain through a service arrangement with Zegona Communications and an innovation hub in Málaga.
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Zegona Communications highlighted a newly signed ten-year network access agreement with Spanish fiber provider, Finetwork, emphasizing that this move “demonstrates our [the company’s] ability to move swiftly on our [its] well-defined strategy.” Zegona argued that this agreement showcases their potential to enhance Vodafone Spain’s performance and deliver shareholder value.
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