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Zegona acquires Vodafone Spain for € 5bn

TMT investor Zegona is buying 100 % of Vodafone Spain for € 5 billion from Vodafone Europe . Zegona says it will fund the acquisition through a combination of new debt , Vodafone Financing and a new equity raise :

• Zegona has committed to debt financing of € 4.2 billion and a committed revolving credit facility of € 0.5 billion . Post equity raising , the new debt facility is anticipated to deliver a net debt position at Completion of € 3.7 billion , representing 2.9x leverage
• Vodafone will provide up to € 900 million financing
• Zegona equity will raise up to € 600 million from third party investors to be executed before completion Vodafone will provide a brand licence
“ We are very excited about the opportunity to return to the Spanish telecoms market ,” declared Eamonn O ’ Hare 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 .
“ We are very excited about the opportunity to return to the Spanish telecoms market ,” declared Eamonn O ’ Hare , Zegona ’ s chairman and CEO . “ This financially attractive acquisition marks our third deal in Spain after successful turnarounds at Telecable and Euskaltel . With our clearly defined strategy and proven track record , we are confident that we can create significant value for shareholders .”
“ The sale of Vodafone Spain is a key step in right-sizing our portfolio for growth and will enable us to focus our resources in markets with sustainable structures and sufficient local scale ,” added Margherita Della Valle , chief executive of Vodafone . “ I would like to thank our entire tea-rns . Following the recently announced transaction in the UK , Spain is the second of our larger markets in Europe where we are taking action to improve the Group ’ s competitiveness and growth prospects .”
Completion of the acquisition is conditional on certain approvals being obtained from Zegona shareholders as well as regulatory clearances . Zegona is targeting completion in Q1 2024 .

Call for creative industries AI protection

Coinciding with the UK AI Safety Summit at Bletchley Park , Dame Caroline Dinenage , chair of the Culture , Media and Sport Committee of the UK House of Commons , has called on the Government to ensure the UK ’ s creative industries are properly protected from the risks posed by artificial intelligence while supporting the sector to make the most of new technologies .
“ This week ’ s summit
provides a golden opportunity for the Government to signal that it is firmly on the side of creatives across the UK and globally who understandably feel threatened by the emergence of AI and its potential to trample over their rights ,” commented Dinenage .
“ After past missteps , the Government must seize the chance to show that it is serious about
developing a copyright and regulatory regime with proper protections from AI in order to regain the trust of the arts and cultural sector . It must also show that it is properly supporting the sector to make the most of new technology to allow the UK to fulfil its potential as a creative industry superpower on the world stage ,” she asserted .
A report from the Committee in August 2023
called on the Government to follow through on its pledge and abandon plans to allow AI developers the free use of existing music , literature and works of art for the purposes of training artificial intelligence to come up with new creations .
It warned that the Government ’ s original plan to exempt text and data mining by AI from copyright protection risks , showed a clear lack of understanding of the needs of the UK ’ s creative industries .
The Committee also concluded that skills shortages in the creative and tech sectors are limiting the growth and potential of creative technology in the UK despite headline successes . The Government must address long-standing UK-wide skills and personnel shortages in the sector via its upcoming Cultural Education Plan , the report said .
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