Spanish authorities have granted the necessary approvals for the sale of Vodafone Spain to Zegona Communications, a British investment firm. The transaction, valued at €5 billion, is expected to complete by the end of May 2024. Vodafone will receive €4.1 billion in cash and €0.9 billion in Redeemable Preference Shares. Subsequently, Vodafone plans to start a €500 million share buyback programme on 15 May 2024, as part of its strategy to return €2 billion to shareholders over the next 12 months. The deal will not transfer any of Vodafone Spain’s debt to the new owner, which leaves Vodafone Group’s net debt standing at €33.2 billion. Zegona is also in talks to acquire Avatel Telecom, a major rural broadband provider in Spain. The Spanish telecom market has seen significant consolidation, including the €18.6 billion merger between Orange and Msmvil, now called MasOrange, which has overtaken Telefonica as Spain’s largest converged operator.

Telecommunications, Private Equity,Spain, United Kingdom