Zegona Communications (Zegona) announced the completion of the acquisition of 100 percent of the Spanish operations of Vodafone Group, i.e., Vodafone Spain. The EUR 5 billion deal was finalised in October 2023 and won approval from the Spanish government in mid-May, as reported by TelecomTalk. Zegona noted that Vodafone is the number three player in Spain with significant market shares in mobile, broadband, and TV.
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Details of the Deal
The selling company is Vodafone Europe, a 100 percent-owned subsidiary of Vodafone Group, and the buying entity is Zegona Bidco, a 100 percent-owned subsidiary of Zegona Communications. Vodafone confirmed the terms of the deal, under which it will receive EUR 4.1 billion in cash for the Spanish assets and an additional EUR 900 million in the form of redeemable preference shares.
"We have now completed the acquisition of Vodafone Spain and look forward to transforming the business and returning it to growth," Zegona said. "The new 10-year network access agreement signed with Finetwork earlier this week demonstrates our ability to move swiftly on our well-defined strategy. With our proven track record, we are confident we will improve the performance of Vodafone Spain while delivering significant value for shareholders."
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Post-Acquisition Agreements
As part of this transaction, Vodafone and Zegona have also entered into an agreement whereby Vodafone will provide certain services to Vodafone Spain after the completion of the transaction, and Vodafone will continue to have a presence in Spain through its Innovation Hub in Malaga.
