Vodafone Group agreed to sell 100% of its Spanish subsidiary to Zegona Communications plc for at least €4.1 billion in cash and up to €0.9 billion in the form of Redeemable Preference Shares.
In addition, Vodafone and Zegona have entered into an agreement whereby Vodafone will provide certain services to Vodafone Spain for a total annual service charge of c.€110 million.
Margherita Della Valle, Chief Executive of Vodafone, said: “The sale of Vodafone Spain is a key step in right-sizing our portfolio for growth and will enable us to focus our resources in markets with sustainable structures and sufficient local scale. I would like to thank our entire team in Spain for their dedication to our customers and relentless determination to improve our organic performance. However, the market has been challenging with structurally low returns.”
