Regulators Approve Vodafone Spain Sale

The country’s regulators approved Vodafone’s sale of its Spain operations to Zegona Communications. The operator stated it has now received the necessary clearance for the deal to be completed this month, at which point it will receive €4.1 billion in cash and €900 million in the form of redeemable preference shares.

As a result of the clearance, Vodafone added it intends to commence an initial €500 million share buyback program on 15 May, part of its wider plans to return €2 billion over the next 12 months. Vodafone struck the deal to sell the business in October 2023 in a move that will see it exit the market. CEO Margherita Della Valle said at the time the sale of the asset was a key step in right-sizing its portfolio for growth and focusing resources on more sustainable markets. She also bemoaned Spain’s market dynamics, describing it as challenging with structurally low returns.

As part of a turnaround strategy, the company also agreed with Swisscom to sell its business in Italy, with a regulatory process ongoing. The deal’s clearance comes as the company reported its fiscal 2024 results. Vodafone's 2023 revenue declined 2.5% to €37.7 billion, due to the disposals of Vantage Towers, Vodafone Hungary, and Vodafone Ghana in the prior financial year and adverse exchange rate movements. Its core earnings for the full year increased 2.2% to more than €11 billion, helped by gains in the final quarter from its Germany and UK operations. Net debt remained stable at €33.2 billion.