Vodafone Finishes Sale of Its Spanish Subsidiary to Zegona

Vodafone Group completed a sale of its Spanish operations to Zegona Communications for €5 billion. The deal concludes a process started in late 2023 and also ends the group’s direct presence in Spain.

The deal involves a €4.1 billion cash element and €900 million in redeemable preference shares. In their respective statements, Vodafone and Zegona each noted the enterprise value was higher than various earnings metrics for the year to end September 2023.

Zegona previously announced former Euskaltel CEO Jose Miguel Garcia will head up the Spanish business. It stated the appointment reunites a team that has a proven track record of highly successful operational transformations in Spanish telecoms. Vodafone explained it would still have a presence in Spain through a service arrangement with Zegona and an innovation hub in Malaga.

Zegona noted a renewed, ten-year network access deal signed with Spanish fiber player Finetwork earlier this week demonstrates its ability to move swiftly on its well-defined strategy. The company claims it can boost the performance of Vodafone Spain and deliver shareholder value.