24th Jul 2024 13:31
(Alliance News) - Zegona Communications PLC shares rose on Wednesday after it announced a network sharing agreement for its recently acquired business in Spain with Orange SA and a local partner.
Zegona shares were up 11% to 302.16 pence on Wednesday afternoon in London, giving the company a market capitalisation of GBP2.13 billion.
Zegona, formed only in 2015, was transformed a couple months ago when it completed its EUR5.0 billion acquisition of Vodafone Spain from fellow London-listing Vodafone Group PLC.
On Wednesday, Zegona said it has signed a non-binding term sheet with MasOrange SL, a 50-50 joint venture of France's Orange and Spain's MasMovil Ibercom SA. MasOrange itself was formed only in March of this year and has the largest number of telecommunications customers in Spain.
Vodafone Spain and MasOrange will create a joint fibre network company that will reach 11.5 million premises. The two partners also will bring in an unnamed financial investor. The new company will be 50% owned by MasOrange, 10% by Vodafone Spain, and 40% by the financial investor.
"Creating this new FibreCo in partnership with MasOrange is a key part of our plan to transform Vodafone Spain," Zegona Chair & Chief Executive Officer Eamonn O'Hare said. "The proposed transaction is expected to create significant incremental value for all Zegona stakeholders."
By Tom Waite, Alliance News editor
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