Vodafone gets approval to sell Spain business to Zegona for €5 bn

Vodafone announced that the sale of Vodafone Spain to Zegona Communications has received final approval from the Spanish authorities.
Vodafone store UKThe sale is expected to complete at the end of May 2024. Vodafone will receive €4.1 billion in cash and €0.9 billion in the form of Redeemable Preference Shares.

Vodafone Spain has reported sales revenue of €3.846 billion during fiscal 2023-24. Vodafone Spain’s revenue declined by 1.6 percent due to lower service revenue. Service revenue declined by 2.4 percent (Q3: -1.1 percent, Q4: -2.9 percent) due to price competition in the Consumer value segment, a lower customer base and a reduction in mobile termination rates.

Vodafone will provide certain services to Vodafone Spain after completion of the transaction. Vodafone will continue to have a presence in Spain through its Innovation Hub in Malaga.

Vodafone Group recorded a non-cash charge of €345 million, included in discontinued operations as a result of the re-measurement of Vodafone Spain to fair value less costs to sell.