GIC takes 25% stake in Spain’s broadband venture

[SINGAPORE] Sovereign wealth fund GIC will take a 25 per cent stake in a fibre optic broadband venture between MasOrange, partly owned by France’s Orange, and Vodafone Spain, which is owned by Britain’s Zegona Communications, the three companies said on Monday (Aug 4).

Following GIC’s investment in the joint venture, MasOrange will hold 58 per cent of the firm and Vodafone Spain will have a 17 per cent stake, the companies said.

Vodafone Spain, which was acquired by Zegona in a 5 billion euro (S$7.4 billion) deal last year, will make 1.4 billion euros of upfront proceeds from the joint venture, Zegona said in a separate statement.

The deal comes after Vodafone Spain agreed in January to create the new fibre network company in Spain with MasOrange.

The parties at the time of the announcement of the deal were also looking for an investor for the new venture who was expected to hold 40 per cent of the business.

The Financial Times first reported about GIC taking a stake in the joint venture earlier on Monday. REUTERS