The sale of Vodafone Spain to Zegona Communications has been finalized following approval from Spanish regulators. This landmark deal, valued at €5 billion, includes €4.1 billion in cash and €0.9 billion in redeemable preference shares. Initially announced last October, the transaction received regulatory approval earlier this month. Zegona hailed the deal as the “largest ever reverse takeover.”
Vodafone and Zegona have also established a partnership agreement ensuring Vodafone will continue providing services to Vodafone Spain post-acquisition. Additionally, Vodafone will maintain its presence in Spain through its Innovation Hub in Málaga.
Eamonn O’Hare, Chairman and CEO of Zegona, expressed his enthusiasm for the acquisition, stating, “We have now completed the acquisition of Vodafone Spain and look forward to transforming the business and returning it to growth.” He also announced the appointment of José Miguel García as the new CEO of Vodafone Spain. García, who has previously led Jazztel and Euskaltel, is expected to drive operational success.
Highlighting a new strategic move, O’Hare mentioned the recent 10-year network access agreement with Finetwork, which aligns with Zegona’s strategy to enhance Vodafone Spain’s performance and deliver substantial value to shareholders.
The decision to sell Vodafone Spain follows a period of uncertainty and strategic deliberations. In 2021, Vodafone considered a merger with MasMovil but ultimately lost to Orange. By September, Zegona had emerged as a potential buyer.
Margherita Della Valle, Vodafone’s Chief Executive, described the sale as a critical move to streamline Vodafone’s portfolio and focus resources on markets with sustainable growth potential. She acknowledged the challenging market conditions in Spain and expressed gratitude to the Spanish team for their commitment.
Effective June 1, 2024, José Miguel García will officially take on the role of CEO, supported by a restructured senior management team reduced from 11 to 7 members, signaling a new chapter for Vodafone Spain under Zegona’s ownership.
