Zegona Communications said on Thursday that its unit Vodafone Spain has agreed to create a new fibre network company in Spain with MasOrange, and the British firm is expected to hold about 10% of the new venture.
The parties are also looking for an investor for the new fibre venture, Zegona said, adding that the investor is expected to hold 40% of the firm, while MasOrange, a joint venture between Orange SA and MasMovil, will hold the remaining 50%.
Financial details of the contract were not disclosed, but the new venture is expected to have a run-rate core profit of about 480 million euros ($492.5 million) after three years, Zegona said.
In November, Vodafone Spain signed another deal with Telefonica SA for a new fibre network company, with Zegona holding 10% of that firm as well.
Zegona acquired Vodafone Spain in a deal worth 5 billion euros last year, as part of Vodafone’s exit from its Spanish operations. Reuters