British investment fund Zegona completed the acquisition of Vodafone Spain for 5 billion euros, expanding its footprint in the European telecommunications landscape. The London-listed company, founded in 2015, focuses on investing in media and technology ventures across Europe and is led by Eamonn O’Hare and Robart Samuelson, two former executives from Virgin Media. This move marks Zegona’s largest deal in Spain to date and underscores its strategy of acquiring and guiding telecom assets with capital, governance, and strategic direction from seasoned telecom executives. [Cite: Zegona press materials and market disclosures].
The deal structure presents Zegona as a holding entity that relies heavily on debt to fund investments. In this transaction, the financing package exceeded 4 billion euros from major lenders including Deutsche Bank, ING, and UniCredit, complemented by roughly 1 billion euros lent by Vodafone in exchange for preferred shares. To manage obligations more comfortably, Zegona will pursue capital increases aimed at reducing some of the debt load. The agreement with Vodafone also grants Zegona the right to use the Vodafone brand for a decade, with potential extensions into services such as operator services, the Internet of Things, and roaming. [Cite: Financial press coverage on the deal terms].
British fund Zegona bought Vodafone Spain for 5 billion euros
Since its inception, Zegona has leaned into Spain as a strategic growth arena, though its activity is not limited to the Iberian market. In 2015, a fund associated with Zegona facilitated the acquisition of Telecable, a regional cable operator, for 640 million euros in Asturias. Two years later, Euskaltel integrated Zegona into its corporate structure, retaining a 15% stake and eventually divesting it in 2021. In the same year, MásMóvil launched a 2 billion euro public offer for Euskaltel, which was accepted by the vast majority of Euskaltel shareholders. [Cite: Market histories and corporate filings relevant to Zegona’s Spain exposure].
Between 2016 and 2017, Zegona also explored a possible Yoigo acquisition, engaging in negotiations with TeliaSonera, the Swedish group that owned more than 75% of Yoigo’s shares. The remaining stake was held by ACS, FCC, and Abengoa. Ultimately, MásMóvil completed the Yoigo deal for 612 million euros, solidifying consolidation in Spain’s telecom sector and shaping the competitive landscape in which Zegona operates. [Cite: Industry analyses and transaction records].