Bloomberg reports Vodafone Group is close to offloading at least 50% of the unit in a deal valuing the business at €5 billion
According to a report from Bloomberg, Vodafone Group is close to selling a stake of at least 50% in its Spanish business to Zegona Communications. The deal values the business at more than €5 billion according to unnamed sources.
The details could be finalised in days, as London-based Zegona, an acquisition vehicle, appears to have seen off rival bidders including RRJ Capital.
No more details are forthcoming from either party beyond those made public in September when the two acknowledged they were in negotiation regarding the Spanish unit.
Vodafone looking to exit
Vodafone has been keen to do lessen the burden of its Spanish opco for more than a year – the country’s market is ferociously competitive. After months of speculation that it would acquire MASMOVIL, it was pipped at the post by Orange Spain.
That proposed merger is still awaiting regulatory approval, with Orange and MASMOVIL having made a binding agreement and offered remedies to improve its chances of approval last week. If that merger is allowed, it will dramatically change the Spanish market, creating a heavyweight rival to incumbent Telefonica.
Margherita Della Valle, who became CEO of Vodafone Group earlier this year, designated the Spanish unit as one the group’s smaller European businesses and ordered a strategic review. She said all options could be considered.
Zegona has already been instrumental in helping to consolidate the telecoms sector in Spain. It was founded by former Virgin Media executives Eamonn O’Hare and Robert Samuelson 2015 and is run by them (see this in-depth interview with O’Hare on its strategy). Zegona bought Euskaltel, which operated in northern Spain, and sold it to MASMOVIL Ibercom, reducing five operators to four.