Singapore’s GIC to take 25% stake in Spanish broadband venture
Telecoms operators MasOrange and Vodafone Spain had anticipated selling a larger stake to an external investor
Singapore’s GIC is set to take a 25 per cent stake in a fibre optic broadband venture between MasOrange and Vodafone Spain in a deal that will give the sovereign wealth fund a foothold in one of Europe’s biggest telecoms markets.
GIC’s investment in the company, which will serve 12mn premises, will be announced as soon as Monday, people familiar with the matter told the Financial Times, with one adding that its stake would be worth about €1.4bn.
The deal, which will create one of the biggest fibre companies in Europe, comes after the two Spanish telecoms providers announced the creation of the joint venture in January.
The two companies had originally planned for an external investor to take a stake of up to 40 per cent, but the share taken by GIC — which manages an estimated $800bn in assets — will be significantly lower.
MasOrange — Spain’s largest mobile network operator, formed by the near-€20bn merger agreed in 2022 between Orange España and MásMóvil — will hold a 58 per cent stake in the venture, according to the people.
Vodafone Spain, which was sold by its eponymous parent to London-listed Zegona Communications in 2024, will have 17 per cent. The two companies had originally expected to complete the deal by the end of June.
MasOrange said in January it would use the proceeds from any deal to reduce its debt, while Vodafone Spain said it would use the funds to cut leverage and return capital to shareholders.
The Spanish telecoms market has been fiercely competitive in recent years, as providers — including Vodafone Spain and MasOrange — have battled for customers with industry heavyweight Telefónica.
The desire to attract customers has seen the groups sign agreements to expand their networks in an effort to grow market share.
Zegona, which paid €5bn for Vodafone Spain, has signed a deal for another fibre joint venture with Telefónica to cover a further 3.5mn premises. Talks to find a minority investor in that deal are also progressing, according to a person with knowledge of the matter.
Zegona, which is led by former Virgin Media executives Eamonn O’Hare and Robert Samuelson, specialises in buying, fixing and selling struggling telecoms assets.
Since its acquisition of Vodafone Spain last year, Zegona has cut 28 per cent of the Spanish operator’s staff and streamlined other costs. Zegona’s share price has risen 170 per cent in the past year.
O’Hare received total pay of £131mn last year, making him the highest paid chief executive of a London-listed business.
Zegona, MasOrange, Vodafone Spain and GIC declined to comment.