MasOrange, Vodafone Spain, and GIC have signed an agreement to establish an innovative fibre network company in Spain (FibreCo). Under the terms of the agreement, the parties will hold the following approximate ownership stakes: MasOrange 58%, Vodafone Spain 17%, and GIC 25%.
MasOrange and Vodafone Spain will jointly contribute around 12 million real estate units and nearly 5 million customers to the new joint fibre network company. The network will be exclusively dedicated to both operators, who will also continue to maintain and operate the infrastructure each of them contributes to FibreCo.
“We are very pleased to announce this agreement with Vodafone Spain and GIC to create the largest FibreCo in Spain. GIC was selected following a competitive process involving nearly 20 interested investors. This partnership will allow us to offer our customers the best premium FTTH connectivity and ensure future technology upgrades,” said Meinrad Spenger, CEO of MasOrange.
José Miguel García, CEO of Vodafone Spain, added: “We continue to move forward with our strategy to transform Vodafone Spain into a more competitive, efficient, and growth-oriented company. This agreement is a major milestone in our plan, as it will ensure our customers have access to fibre-optic networks and better service.”
Boon Chin Hau, Head of Infrastructure Investments at GIC, stated: “We are delighted to partner with MasOrange and Vodafone Spain to create the largest FibreCo in Spain. The country is one of the most advanced in Europe in fibre-to-the-home deployment, although there is still significant potential for further fixed broadband penetration. Moreover, FibreCo has been designed to deliver high-quality service to customers while offering robust characteristics for essential infrastructure investors.”
Significant benefits for the Spanish market and a step forward in improving telecommunications infrastructure in Spain
The fibre network will provide substantial benefits to both operators’ customers. This infrastructure will contribute to the development of connectivity and digitalisation in Spain, offering operators a benchmark FTTH network, driving operational efficiencies, and creating a strong foundation for ongoing network and service improvement.
Thanks to its increased scale, two strong long-term clients, operational efficiencies, and investment capacity, the new FibreCo will enable the rapid adoption of cutting-edge technologies, including the latest market advancements such as XGSPON, while fostering innovation to deliver top-quality service in Spain.
A sustainable fibre network aligned with environmental and ESG standards
The new FibreCo created by MasOrange, Vodafone Spain, and GIC complies with high ESG standards and is built on sustainable practices. By using energy-efficient FTTH technology, the network is designed to significantly reduce power consumption.
Financing and use of proceeds
The joint venture has successfully secured financing on attractive terms, reflecting the strong confidence and commitment of both its shareholders and financial partners.
FibreCo will have a highly efficient capital structure with over €5 billion in net debt. Most of this debt is rated investment grade, reflecting its solid credit profile and the positive outlook for the Spanish market. Nearly 20 global banks have participated in the financing, demonstrating exceptional support from lending institutions.
As part of the transaction, MasOrange will acquire Conexus Networks, the wholesale FTTH access provider in northern Spain, and contribute it to FibreCo.
As committed by MasOrange, the €3.2 billion in net proceeds from the FibreCo transaction will be fully allocated to debt repayment, ensuring a substantial deleveraging in line with the Group's medium-term target of reducing its debt ratio to 2.75x. FibreCo will be fully deconsolidated from MasOrange’s accounts.
The transaction is subject to the relevant regulatory approvals and is expected to close in the fourth quarter of the year.
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