Zegona eyes slice of new fibre venture with Vodafone Spain, MasOrange (updated)

Zegona Communications

02/01/2025 17:52

(Adds background and details of agreement throughout)
       Jan 2 (Reuters) - Zegona Communications  ZEG.L  said on Thursday that its unit Vodafone
Spain has agreed to create a new fibre network company in Spain with MasOrange, and the British
firm is expected to hold about 10% of the new venture.
    The parties are also looking for an investor for the new fibre venture, Zegona said, adding
that the investor is expected to hold 40% of the firm, while MasOrange, a joint venture between
Orange SA  ORAN.PA  and MasMovil, will hold the remaining 50%.
    Financial details of the contract were not disclosed, but the new venture is expected to
have a run-rate core profit of about 480 million euros ($492.5 million) after three years,
Zegona said.
    In November, Vodafone Spain signed another deal with Telefonica SA  TEF.MC  for a new fibre
network company, with Zegona holding 10% of that firm as well.
    Zegona acquired Vodafone Spain in a deal worth 5 billion euros last year, as part of
Vodafone's  VOD.L  exit from its Spanish operations.
    ($1 = 0.9746 euros)

 (Reporting by Unnamalai L in Bengaluru; Editing by Alan Barona)
 ((Unnamalai.L@thomsonreuters.com))