Singapore’s GIC has taken a 25% stake in a new fibre network company in Spain owned by telecommunication operators MasOrange and Vodafone Spain.
MasOrange and Vodafone Spain are contributing approximately 12m premises and 5m customers to create the new joint company FibreCo. Both companies will continue to operate their contributed networks and hold 58% and 17% ownership stakes, respectively, alongside the Singaporean sovereign fund.
As part of the deal, MasOrange is expected to acquire Conexus Networks, a northern Spanish wholesale fibre-to-the-home (FTTH) provider, and contribute to FibreCo.
MasOrange, which expects to receive €3.2bn net proceeds from the transaction, said it will use the capital to pay down its debt.
Zegona Communications, the owner of Vodafone Spain, said the FibreCo deal will provide €1.4bn in proceeds for Vodafone Spain.
Boon Chin Hau, chief investment officer, infrastructure at GIC, said: “We look forward to partnering with MasOrange and Vodafone Spain to create Spain’s largest FibreCo. Spain is one of the most advanced European countries in terms of its Fibre to the Home rollout, however, there remains significant fixed broadband penetration growth potential.
“In addition, the FibreCo has been designed to offer best-in-class service quality to customers whilst offering robust core infrastructure characteristics to investors.”
Meinrad Spenger, CEO of MasOrange, said: “We are very pleased to announce this agreement with Vodafone and GIC to establish the largest FibreCo in Spain. GIC was chosen following a competitive process involving nearly 20 interested investors.
“This venture will provide our customers with the best premium FTTH connectivity and assure future technology upgrades.”
José Miguel García, first executive of Vodafone Spain, said: “We continue to take steps in our strategy to transform Vodafone Spain into a more competitive, efficient and growing company. This agreement is a relevant milestone in our plan, since it will guarantee our customers’ access to fibre optic networks and better service.”
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