Vodafone to Sell Spanish Unit to Zegona for Up to €5 Billion
- Zegona will pay for the Spanish business with new debt
- Vodafone has been trying to do a deal in Spain for years
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Vodafone Group Plc agreed to sell its Spanish business to Zegona Communications Plc in a deal valued at as much as €5 billion ($5.3 billion) including debt.
To finance the deal, Zegona has raised debt of €4.2 billion and a committed revolving credit facility of €500 million, the company said in a statement on Tuesday. Vodafone will provide as much as €900 million financing through an investment vehicle, which will buy new shares of Zegona.