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Discussions have been ongoing since September last year
Vodafone Group has completed the sale of its Spanish business Vodafone Spain to Zegona Communications for €5 billion.
As per the agreement, Vodafone will receive €4.1 billion in cash and €0.9 billion in redeemable preference shares.
The newly acquired company will still use the Vodafone branding for up to ten years, according to a statement released by Vodafone in October.
Proceedings began in September last year, and were confirmed by the two companies the following month.
“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,” said Vodafone CEO Margherita Della Valle in a statement.
“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,” she continued.
“We have now completed the acquisition of Vodafone Spain and look forward to transforming the business and returning it to growth,” said Eamonn O’Hare, Zegona’s Chairman and CEO in a statement released today.
“I am pleased to welcome José Miguel García to lead Vodafone Spain as CEO, reuniting a team that has a proven track record of highly successful operational transformations in Spanish telecoms,” he continued.
Vodafone will continue to have a small presence in the Spanish market through its innovation hub in Malaga. The R&D centre opened in 2022 and develops new solutions in areas such as the Internet of Things (IoT), edge computing, and Open RAN.
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