REG - Zegona Comms. - Vodafone Spain - new Fibre wholesale terms agreed

Zegona CommunicationsAnnouncement

12/09/2024 14:00

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RNS Number : 0033E  Zegona Communications PLC  12 September 2024

12 September 2024

 

Zegona Communications plc

 

Vodafone Spain and Telefonica sign new fibre wholesale agreement

 

Zegona Communications plc (LSE: ZEG) is pleased to announce Vodafone ONO
S.A.U. ("Vodafone Spain") and Telefónica de España ("Telefonica") have
signed a confidential non-binding term sheet for a new fibre wholesale
agreement.

 

This new agreement will replace the current wholesale contract which is due to
expire at the end of 2024. The agreement will create material synergies for
both companies by maximising the use of existing networks and optimising
their investments. The terms of the new agreement deliver significant economic
benefits to Vodafone Spain compared to its current wholesale arrangements.

 

In July 2024, Zegona announced it had signed a non-binding term sheet with
MasOrange, S.L. to create a joint fibre network company (a "FibreCo")
covering approximately 11.5 million premises across Spain. In addition,
Zegona announced in July 2024 it had signed a non-binding term sheet with
Telefonica for a joint FibreCo covering approximately 3.5 million premises.

 

This agreement complements the two recently announced FibreCo deals and
completes the transformation of Vodafone Spain's fixed line strategy. The
combination of these fibre transactions ensures Vodafone Spain will have long
term, economically advantaged access to full national fibre coverage enabling
it to offer the most technically advanced connectivity services to all its
customers.

 

Eamonn O'Hare, Chairman and CEO of Zegona commented "This new fibre wholesale
agreement with Telefonica fully complements our recently announced FibreCo
transactions and completes the transformation of Vodafone Spain's fixed line
strategy. The powerful combination of these agreements will deliver national
fibre coverage with no incremental network investment. Vodafone Spain will be
able to leverage these advanced network assets to offer all its customers
leading edge fibre solutions. We expect these agreements to deliver
substantial economic benefits to Vodafone Spain and 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

 

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.

 

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