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Zegona Communications plc announced on 4 December 2025 the completion of Vodafone Spain's PremiumFiber joint venture with MasOrange and GIC, which delivered €1.4bn in upfront cash proceeds to Vodafone Spain. These proceeds will fund a special dividend equivalent to £1.62 per ordinary share for Zegona shareholders, comprising €975m for EJLSHM Funding Limited and a €440m pro rata payment for other ordinary shareholders. Subject to shareholder approval later in December 2025, the dividend payment, a 69% reduction in ordinary shares, and a €200m share buyback are expected in January 2026.
| Date | 4 Dec 2025 |
| Time | 15:27:07 |
| Category | Acquisitions and alliances |
| ID | 3367K |
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4 December 2025 |
LEI: 213800ASI1VZL2ED4S65 |
Zegona Communications plc[1]
€1.4bn Proceeds From PremiumFiber Completion
Zegona is pleased to announce the completion of Vodafone Spain's[2] fibre joint venture with MasOrange[3] and GIC[4] (PremiumFiber).
PremiumFiber brings together the network assets of Vodafone and MasOrange to create a 100% fibre-to-the-home ("FTTH") network covering over 12m premises across Spain. It is one of the most advanced fibre infrastructures in Europe. It has virtually all its FTTH network built and provides services to nearly 5m Vodafone and MasOrange customers. PremiumFiber in combination with FiberPass (Telefonica FiberCo) completes the transformation of Vodafone Spain's fixed line strategy, delivering full FTTH services nationally.
The completion of the PremiumFiber transaction delivered upfront cash proceeds of €1.4bn for Vodafone Spain. As recently communicated[5] these cash proceeds will be used to pay Zegona shareholders a special dividend equivalent to £1.62 per ordinary share[6]. This special dividend will provide EJLSHM Funding Limited with €975m to settle the Vodafone financing in full[7] and a €440m pro rata payment for the other ordinary shareholders. Settling the Vodafone financing will enable a 69% reduction in Zegona ordinary shares[8] and Zegona will then initiate a €200m share buyback programme[9].
Subject to shareholder approval later this month[10], the payment of this €1.4bn special dividend, the 69% reduction in Zegona ordinary shares and the initiation of the €200m share buyback programme are expected in January 2026.
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Investor enquiries: |
Media enquiries: |
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Alfonso Enríquez |
Jaime De Andres |
Tilly Abraham (Sodali & Co) |
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info@zegona.com |
About Zegona
Zegona is publicly listed on the Main Market of the LSE. It was established in 2015 with the objective of investing in businesses in the European Telecommunications, Media and Technology sector and improving their performance to deliver attractive shareholder returns. Zegona is led by former Virgin Media executives Eamonn O'Hare and Robert Samuelson. In 2024, Zegona completed the acquisition of Vodafone Spain.
About Vodafone Spain
Vodafone Spain is a national provider of fixed, mobile and TV services in Spain, serving consumer, business and public administration customers. It was acquired by Zegona in May 2024.
About MasOrange
MasOrange provides fixed, mobile and TV services for residential and business customers across Spain and is the market leader by number of customers. MasOrange was formed in 2024 through the combination of Orange Spain and MasMovil and is owned 50% by Orange Group and 50% by Lorca JVco Ltd, which is majority owned by Providence, Cinven and KKR.
About GIC
GIC is a leading global investment firm established in 1981 with the aim of securing Singapore's financial future. As the manager of Singapore's foreign reserves, GIC takes a long-term, disciplined approach to investing with an asset allocation strategy that spans three asset groups - Equities, Fixed Income, and Real Assets.
[1] Zegona
[2] Vodafone Holdings Europe, S.L.U. ("Vodafone Spain" or "Vodafone") retains a stake of 17%
[3] MasOrange S.L ("MasOrange") retains a stake of 58%
[4] GIC Private Markets Pte Ltd ("GIC") invests in a stake of 25%
[5] Announced on the 27 November 2025 and titled €1.8bn Return and 69% Reduction in Ordinary Shares
[6] Based on a EUR/GBP rate of 0.87. Actual GBP amount per share may change with movements in the foreign exchange market and the exact payment date.
[7] The redemption of the €900m of preference shares in EJLSHM held by Vodafone Consolidated Holdings Limited (part of Vodafone Group PLC), payment of €75m accrued preferential dividends plus EJLSHM winding up expenses, to ensure full repayment of the Vodafone financing. The final amount will vary depending upon the exact payment date.
[8] Dependent upon shareholder approval at the general meeting to be convened on 22 December 2025. Post repayment of the Vodafone financing, Zegona will re-designate the Zegona ordinary shares held by EJLSHM as non-voting deferred shares with negligible economic rights. This will reduce Zegona's ordinary share count to 235,969,302 shares. The deferred shares will be bought back for £1 in aggregate and cancelled.
[9] The buyback programme will be carried out in accordance with a buyback agreement entered into with Canaccord Genuity Limited. This provides for on-market purchases, up to a total aggregate consideration of €200m (exclusive of expenses), to be carried out under the authorities granted at Zegona's 2025 AGM and any renewals of those authorities. During closed periods, Canaccord will be authorised to make on-market purchases independently and without influence from Zegona.
The buyback programme will commence after Zegona completes the cancellation of the 523m Zegona ordinary shares held by EJLSHM. It will continue whilst Zegona has shareholder authority and remains under the €200m limit. If the cancellation of the EJLSHM shares occurs before the completion of the FiberPass transaction Zegona plans to fund the initial stages of the buyback programme from current balance sheet resources.
[10] Following the announcement of Zegona's capital allocation proposal on the 27 November 2025, Zegona has convened a General Meeting ("GM") at 9.00 a.m. on Monday 22 December 2025 to pass the resolution required to be able to implement that policy. A Circular to Shareholders (the "Circular") containing the Notice of GM was posted on 27 November 2025.