REG - Zegona Comms. - Vodafone Spain - joint FibreCo terms agreed

Zegona CommunicationsAnnouncement

24/07/2024 07:00

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RNS Number : 5534X  Zegona Communications PLC  24 July 2024

24 July 2024

 

Zegona Communications plc

 

Vodafone Spain and MasOrange 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 MasOrange, S.L. ("MasOrange")
(together the "Parties") have signed a confidential non-binding term sheet
setting out the proposed key terms for a national network sharing agreement
(the "Proposed Transaction").

 

The Proposed Transaction will involve Vodafone Spain and MasOrange creating a
joint fibre network company ("FibreCo"). This will cover approximately 11.5
million premises across Spain 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, with the ownership split post this
investment expected to be 50% MasOrange, 40% financial investor and 10%
Vodafone Spain.

 

The new fibre company will benefit Vodafone Spain and MasOrange customers, as
well as the Spanish market as a whole. It will guarantee access to the most
modern fibre optic network, offering best-in-class quality, and enabling the
rapid adoption of new technologies, while stimulating investment and
innovation. This network will become a benchmark for sustainable development,
meeting high ESG standards thanks to energy savings.

 

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 this new
FibreCo in partnership with MasOrange is a key part of our plan to transform
Vodafone Spain. It will deliver a highly efficient fibre infrastructure for
our customers with leading fixed line technology which will be at the
forefront of the industry. The Proposed Transaction is expected to create
significant incremental value for all Zegona stakeholders. We will have more
news to share as we progress the transaction to completion."

 

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 MasOrange

 

MasOrange, a 50:50 joint venture between Orange Spain and MásMóvil, started
operations in March 2024 and is currently the leading player within the
Spanish telecoms market by number of customers.

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