Vodafone Spain and Telefonica to Create Fibre Network Joint Venture

By Michael Susin

Vodafone Spain and Telefonica agreed to create a joint fibre-network company in Spain.

Vodafone Spain-owner Zegona Communications said Wednesday that the parties have signed a non-binding term sheet setting out the key terms for the creation of the joint venture.

Telefonica is expected to retain majority ownership and Zegona to retain 10%, as the initial ownership split will be based on their customer numbers within the JV's footprint.

The companies also plan to bring a third-party financial investor into the share capital of the new company.

The new joint venture will cover around 3.5 million premises and will provide fibre access services to both companies within this footprint.

"Creating a new FibreCo in partnership with Telefonica is another key milestone in our plan to transform Vodafone Spain. (...) Moving Vodafone Spain to these new FibreCo structures is expected to create significant incremental value for all Zegona stakeholders," Zegona's Chair and Chief Executive Eamonn O'Hare said.

On July 24, Zegona announced the creation of a joint venture with MasOrange, MasOrange FibreCo, covering around 11.5 million premises in Spain.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

July 31, 2024 03:05 ET (07:05 GMT)

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