Vodafone to sell Spanish arm to Zegona for $5.30 bln

People walk past a Vodafone store in Ronda, Spain, October 3, 2022. REUTERS/Jon Nazca/File Photo Acquire Licensing Rights

LONDON, Oct 31 (Reuters) – Britain’s Vodafone (VOD.L) will sell its Spanish business for 5 billion euros ($5.30 billion) to Zegona Communications (ZEG.L), the companies said on Tuesday.

Vodafone’s Chief Executive Margherita Della Valle said the sale would enable it to focus its resources in markets with « sustainable structures and sufficient local scale ».

Vodafone said it would receive at least 4.1 billion euros in cash and up to 0.9 billion euros in preference shares redeemable no later than six years after closing.

Britain’s Zegona, which previously bought and sold telecoms assets in Spain, said it would fund the deal through 4.2 billion euros in new debt, up to 900 million euros of financing from Vodafone and an equity raise of up to 600 million euros.

($1 = 0.9427 euros)

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