REG - Zegona Comms. - Vodafone Spain and Telefonica agree FibreCo terms

Zegona CommunicationsAnnouncement

31/07/2024 07:00

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RNS Number : 4793Y  Zegona Communications PLC  31 July 2024

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 FibreCo(1) (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 (mailto: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 24(th) 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

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