January 06, 2025 10:41 GMT
COMMUNICATIONS: MasOrange and Vodafone Spain Sign Binding FibreCo Contract
COMMUNICATIONS
ORAFPTEFP
Slight positive for Orange on a stronger position for MasOrange (they own 50%); more neutral for Telefonica as the JV is a combo of existing connections that won’t overlap much with Telefonica’s offering. Telefonica already has plans for a smaller fibre JV with Vodafone Spain while the two have renewed wholesale access agreements.
- Vodafone Spain and MasOrange on Friday confirmed the creation of a fibre JV in line with previous announcements. FibreCo run-rate EBITDA seen at EUR 480mn after three years.
- MasOrange to hold a 50% stake, Vodafone Spain 10% with 40% for a financial investor with initial interest from investors described as strong. Completion targeted for H125.
- Prior announcements had guided for initial ownership based on the proportion of fixed network customers; media reports put this at 70%/30% in favour of MasOrange.
- Cinco Dias sources note that dividends and stake proceeds would mirror this split as would a possible special dividend funded via FibreCo debt. They note potential proceeds of EUR 3.2bn and EUR 1.3bn for the respective parties, earmarked for deleveraging at MasOrange and deleveraging/payouts at Vodafone Spain.
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