Zegona Communications acquires Vodafone Spain
- Acquirer
- Zegona Communications
- Target
- Vodafone Spain
- Deal Value
- $5.3B (€5B)
- Status
- Completed
- Announced
- October 31, 2023
What happened
Vodafone agreed to sell its Spanish business to UK-listed investment vehicle Zegona Communications for €5 billion in cash and redeemable preference shares — an enterprise value around a third of what the business was once thought to be worth. Zegona, a tiny listed shell run by ex-Virgin Media executives, financed the deal with debt and new equity; it completed in May 2024, with Vodafone licensing its brand to the new owners.
Why it matters
A £3 million shell company bought the fourth-largest telecom operation in Spain — proof of how far incumbent valuations had fallen in hyper-competitive markets. For Vodafone it was the first big domino in a strategic retreat that would soon include Italy. For everyone else, it demonstrated that financial buyers with operating pedigree could now pick up national telecom businesses at prices private equity once paid for cable assets.
Source: Vodafone
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