Business
GIC invests in Vodafone Spain FibreCo
GIC invests in Vodafone Spain FibreCo.
About this update from Zegona Communications Plc
[{"type":"text","content":"\n\nGIC invests in Vodafone Spain FibreCo\nTHIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION IS UNLAWFUL.\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.\nFOR IMMEDIATE RELEASE.\nLEI: 213800ASI1VZL2ED4S65\n04 August 2025\nZegona Communications plc\nVodafone Spain, MasOrange and GIC sign FibreCo contract\nZegona Communications plc (LSE: ZEG) (\"Zegona\") is pleased to announce that Vodafone Holdings Europe, S.L.U. (\"Vodafone Spain\" or \"Vodafone\") and MasOrange S.L (\"MasOrange\") have entered into a binding contract with GIC Private Markets Pte Ltd (\"GIC \") to create a new fibre network company in Spain (\"FibreCo \"). This contract with GIC, a leading global investor, activates the binding agreement Vodafone Spain signed with MasOrange in January 2025.\nFibreCo will bring together network assets of Vodafone and MasOrange to create a 100% fibre-to-the-home (\"FTTH\") network covering 12 million premises across Spain. This will be the most advanced fibre infrastructure in Europe, benefiting from having virtually all its FTTH network already built and with nearly 40% existing network utilization, providing FTTH services to 4.5 million1 Vodafone and MasOrange customers. These customers will have access to the leading high-speed FTTH network in Spain, with FibreCo ensuring the rapid adoption of new technologies such as XGSPON2. Vodafone will use FibreCo to provide services to its existing and future retail and wholesale customers within FibreCo's footprint. The network will be a benchmark for sustainable development, meeting high ESG standards including delivering significant energy savings through more efficient use of network assets.\nGIC has agreed to purchase a c.25%3 stake in FibreCo. Following the GIC investment, the ownership of FibreCo will be 58% MasOrange, 17% Vodafone Spain and 25% GIC4.\nFibreCo will have a very efficient capital structure with over €5bn5 of net debt. The majority of the debt raised will be investment grade. This will enable optimisation of upfront cash proceeds, whilst ensuring maximum retained equity for future strategic flexibility. Vodafone will generate upfront pro...