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The plan was first announced back in July, two months after Zegona acquired Vodafone Spain for €5 billion
Zegona Communications, owner of Vodafone Spain, has announced it has signed a binding contract with Telefonica to launch a new Spanish fibre company.
The new FibreCo will cover 3.6 million premises across the country, and provide fibre access for 1.4 million Vodafone and Telefonica customers. It will be majority owned by Telefonica (63%) and 37% by Vodafone Spain.
“Entering into this FibreCo partnership with Telefonica demonstrates our commitment to transform Vodafone Spain’s fixed line strategy. This transaction gives our business guaranteed access to a future-proof all fibre network with attractive economic terms. Creating and monetising this FibreCo is expected to deliver significant capital returns to Zegona creating value for all stakeholders,” said Eamonn O’Hare, Chairman and CEO of Zegona in a press release.
The transaction is subject to regulatory approval. Completion of the deal, along with the incorporation of a third-party investor is expected in the first half of next year.
As well as this deal, Zegona has also announced the signing of a five-year binding deal between Vodafone Spain, Telefonica and fibre company Bluevia Fibra for fibre wholesale in Spain. Telefonica owns a controlling stake (55%) of Bluevia Fibra.
Earlier this year, Zegona communicated that it has signed non-binding agreements with FibreCos with Telefonica and MasOrange, as well has a non-binding wholesale agreement for a wholesale deal with Telefonica.
“This new contract complements the Telefonica FibreCo which was also signed today. Both contracts cement our long term partnership with Telefonica, deliver significant economic benefits and represent key milestones in our journey to transform Vodafone Spain,” said O’Hare in the separate announcement.
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