• Swindon & Wiltshire M&A, deals
• Wednesday November 1 2023
• Author Name: Peter Davison

Vodafone sells Spanish arm to Zegona for £4.4 billion

Newbury-headquartered telecoms firm Vodafone has sold its Spanish operation to Zegona Communications for £4.4 billion.

Vodafone chief executive Margherita Della Valle said the sale would “enable us to focus our resources in markets with sustainable structures and sufficient local scale.”

“My priority is to create value through growth and improved returns. Following the recently announced transaction in the UK, Spain is the second of our larger markets in Europe where we are taking action to improve the Group’s competitiveness and growth prospects,” she added.

London-based Zegona – which is led by former Virgin Media executives Eamonn O’Hare and Robert Samuelson – has previously bought and sold regional operators Telecable and Euskaltel in Spain.

The parties have entered into an agreement which will see Vodafone provide certain services to Vodafone Spain for a total annual service charge of around €110 million.

The pair will also enter a brand licence agreement, which permits the use of the Vodafone brand in Spain for up to ten years post-completion.

As at end-March this year, Vodafone Spain had gross assets of €7.6 billion. For the 12-months to March 31, it generated a loss before tax of €383 million.