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Vodafone Spain and Telefonica agree FibreCo terms
Vodafone Spain and Telefonica agree FibreCo terms.
About this update from Zegona Communications Plc
[{"type":"text","content":"\n\n31 July 2024\n \nZegona Communications plc\n \nVodafone Spain and Telefonica agree terms to create a joint FibreCo\n \nZegona Communications plc (LSE: ZEG) (\"Zegona\") is pleased to announce Vodafone ONO, S.A.U. (\"Vodafone Spain\") and Telefónica de España, S.A.U. (\"Telefonica\") (together the \"Parties\") have signed a confidential non-binding term sheet setting out the proposed key terms to create a new fibre network company (\"FibreCo Transaction\").\n \nThe FibreCo Transaction will involve Vodafone Spain and Telefonica creating a joint fibre network company in Spain (\"FibreCo\"). This will cover approximately 3.5 million premises and will provide fibre access services to both companies within this footprint. The initial ownership split of the FibreCo between the Parties will be based on their customer numbers within the footprint. The Parties plan to bring a third-party financial investor into the share capital of the new company. Telefonica is expected to retain majority ownership and Zegona to retain 10%.\n \nThe new FibreCo will provide access to the highest quality fibre optic network and support the rapid adoption of new technologies, benefiting Vodafone Spain and Telefonica customers. This network will be a benchmark for sustainable development, meeting high ESG standards through energy savings.\n \nThe combination of this new FibreCo with Telefonica (3.5 million premises) and the recently announced MasOrange FibreCo1 (11.5 million premises) will give Vodafone Spain cost efficient access to extensive all-fibre networks across Spain. These networks will deliver market leading high-speed services with the most advanced technologies.\n \nThe proposed transaction is subject to final agreement between the Parties and any required regulatory approvals.\n \nEamonn O'Hare, Chairman and CEO of Zegona, commented \"Creating a new FibreCo in partnership with Telefonica is another key milestone in our plan to transform Vodafone Spain. This transaction fully complements the MasOrange FibreCo we announced last week and gives Vodafone Spain guaranteed access to future-proof networks with attractive economics. Moving Vodafone Spain to these new FibreCo structures is expected to create significant incremental value for all Zegona stakeholders.\"\n \nFor further information contact:\n&...