Local business newspaper Expansión says MasOrange would hold 50% of the new entity, Vodafone 10% and sell the outstanding 40% to investors
According to the local newspaper Expansión, MásOrange and Vodafone are well down the road in talks about creating a joint venture to offer a fibre broadband in Spain. The goal is that the business would be worth €7.5billion to €10 billion.
MásOrange – the biggest converged operator in Spain since the takeover of MasMovil earlier this year by Orange Spain – would own about 50% of the new entity. Vodafone, now owned by Zegona Communications, would hold 10%.
They hope to attract an investor to take the other 40% stake for €1.5 billion to €2 billion. The newspaper pointed out that this would help both of them reduce their considerable debt while maintaining the controlling stake.
The report says the parties expect the negotiations to be concluded by the end of this month.
UPDATE: The Vodafone and MasOrange have confirmed they are forming a fibre JV but they have not confirmed any of the monetary values suggested by the newspaper report.