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Zegona Communications PLC - London-based investor in Europe’s telecommunications, media and technology sectors - Vodafone Spain, bought by Zegona in May 2024, and MasOrange SL enter into a binding contract to create a new fibre network company in Spain. FibreCo will bring together network assets of Vodafone Spain and MasOrange to create a 100% fibre-to-the-home network covering 12.2 million premises across Spain.
Expects FibreCo to have a run-rate earnings before interest, tax, depreciation and amortisation of around €480 million after 3 years. Zegona and MasOrange plan to bring a third-party financial investor into FibreCo, which will lead to MasOrange retaining 50% ownership, Zegona holding 10% and the financial investor 40%. Says initial interest from investors is strong. The transaction is subject to customary regulatory approvals. FibreCo completion together with the introduction of the third-party investor is expected by the end of the first half of 2025.
In November, Zegona announced it had signed binding contracts with Telefonica SA to create a new fibre network company covering 3.6 million premises across Spain and to renew its fibre wholesale access contract with improved terms. The two deals complete the transformation of Vodafone Spain’s fixed line strategy.
Chair & Chief Executive Eamonn O’Hare says: ‘Monetising these two FibreCos is expected to deliver very significant Zegona proceeds, generating the ability to reduce leverage and provide a return of capital to shareholders.’
Current stock price: 426.00 pence, up 1.9% on Thursday
12-month change: more than doubled
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