Zegona acquires Vodafone Spain for €5bn
October 31, 2023
Zegona has entered into binding agreements with Vodafone Europe for the acquisition of 100 per cent of Vodafone Spain for €5 billion.
Zegona says it will fund the acquisition through a combination of new debt, Vodafone Financing and a new equity raise:
– Zegona has entered into committed debt financing of €4.2 billion and a committed revolving credit facility of €0.5 billion. Post equity raise the new debt facility is anticipated to deliver a net debt position at Completion of €3.7 billion, representing 2.9x leverage
– Vodafone will provide up to €900 million financing
– Zegona equity raise of up to €600 million from third party investors to be executed before completion
Vodafone will provide a brand licence agreement which permits Zegona to use the Vodafone brand in Spain for up to 10 years post completion. Vodafone and Zegona will enter into other transitional and long-term arrangements for services including access to procurement, IoT, mobile roaming and carrier services.
Eamonn O’Hare, Zegona’s Chairman and CEO, said:“We are very excited about the opportunity to return to the Spanish telecoms market. This financially attractive acquisition marks our third deal in Spain after successful turnarounds at Telecable and Euskaltel. With our clearly defined strategy and proven track record, we are confident that we can create significant value for shareholders.”
Completion of the acquisition is conditional on certain approvals being obtained from Zegona shareholders as well as regulatory clearances. Zegona is targeting completion in Q1 2024.
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