Zegona To Buy Vodafone Spain For EUR 5.0 Bln

(RTTNews) - Zegona Communications plc (ZEG.L) said that it entered into binding agreements with Vodafone Europe B.V. in relation to the acquisition of 100% of Vodafone Holdings Europe, S.L.U. or "Vodafone Spain" for 5.0 billion euros.

Zegona said it will fund the acquisition through a combination of new debt, Vodafone Financing and a new equity raise.

Zegona noted that it has entered into committed debt financing of 4.2 billion euros and a committed revolving credit facility of 0.5 billion euros. Vodafone will provide up to 900 million euros financing. Zegona equity raise of up to 600 million euros from third party investors will be executed before completion.

Vodafone Group noted that it will provide a brand license agreement which permits Zegona to use the Vodafone brand in Spain for up to 10 years post completion. Vodafone and Zegona will enter into other transitional and long-term arrangements for services including access to procurement, IoT, mobile roaming and carrier services.

Completion of the acquisition is conditional on certain approvals being obtained from Zegona shareholders as well as regulatory clearances. Zegona is targeting completion in the first-quarter of 2024.