Zegona Communications plc announced that Vodafone Spain and Telefonica have signed a confidential non-binding term sheet which will see the two telecommunications giants collaborate to form a joint fibre network company in Spain, named FibreCo, covering approximately 3.5 million premises.
The FibreCo will provide fibre access services to both Vodafone Spain and Telefonica within its footprint. The initial ownership split of FibreCo will be determined based on the customer numbers each company has within the covered areas.
The parties intend to bring a third-party financial investor into the share capital of the new company, with Telefonica expected to retain majority ownership and Zegona maintaining a 10% stake.
The formation of FibreCo, in conjunction with Telefonica's existing 3.5 million premises coverage and the recently announced MasOrange FibreCo1 covering 11.5 million premises, will provide Vodafone Spain with cost-efficient access to extensive all-fibre networks across Spain.
The proposed transaction remains subject to final agreements between the parties and necessary regulatory approvals.
Eamonn O’Hare, Chairman and CEO of Zegona, commented, “Creating a new FibreCo in partnership with Telefonica is another key milestone in our plan to transform Vodafone Spain. This transaction fully complements the MasOrange FibreCo we announced last week and gives Vodafone Spain guaranteed access to future-proof networks with attractive economics.
"Moving Vodafone Spain to these new FibreCo structures is expected to create significant incremental value for all Zegona stakeholders.”
The FibreCo transaction is poised to set a benchmark for sustainable development in the telecommunications sector, promoting energy savings and the adoption of advanced technologies.
