17th Feb 2026 14:44
(Alliance News) - Zegona Communications PLC on Tuesday said the 40% stake acquisition of FiberPass by AXA IM Alts can proceed to completion following EU clearance.
Shares in the investor in European telecommunications and media companies rose 1.8% to 1,670.00 pence on Tuesday afternoon in London.
FiberPass, which began operations in March of last year, is owned 63% by Madrid-based telecommunications company, Telefonica SA, and Zegona subsidiary, Vodafone Spain.
Zegona purchased Vodafone Spain from Vodafone Group PLC in May 2024. The deal was initially announced back in October 2023 for EUR4.1 billion in cash and around EUR900 million in redeemable preference shares.
On Tuesday, Zegona explained that the stake acquisition by Parisian investment manager, AXA IM Alts, which is part of BNP Paribas SA, is expected to complete before the end of next month. This follow clearance by the EU Commission on Friday last week.
Zegona said Vodafone Spain is set to receive up front proceeds of EUR400 million from the transaction, with the ownership split of FiberPass updating to 55% Telefonica, 40% AXA and 5% Vodafone Spain, as a result.
The investor said it will use EUR200 million of the proceeds to fund its EUR200 million share buyback programme announced back in November of last year.
It intends to use the remaining EUR200 million for debt reduction.
"The AXA investment completes our transformation of Vodafone Spain's fixed network strategy. The combination of FiberPass and PremiumFiber will give guaranteed access to a future-proof, all fibre, national network with attractive economic terms," said Zegona Chair & Chief Executive Eamonn O'Hare.
"This transaction will also deliver significant proceeds which will help drive returns to Zegona shareholders through our share buyback programme, a step change in net debt reduction and an acceleration in reducing total annual interest costs."
Telefonica shares were up 0.2% at EUR3.70 on Tuesday afternoon in Madrid, while BNP Paribas was trading 0.9% higher at EUR91.69 in Paris.
By Christopher Ward, Alliance News reporter
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