GIC takes 25% stake, said to be worth $2.1 billion, in Spain broadband venture

Bengaluru – Singapore’s sovereign wealth fund GIC will take a 25 per cent stake in a fibre-optic broadband venture between MasOrange and Vodafone Spain, the three companies said on 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.

GIC’s stake would be worth about €1.4 billion (S$2.1 billion), the Financial Times reported earlier on Aug 4.

Vodafone Spain, which was acquired by Britain’s Zegona Communications in a €5 billion deal in 2024, will make €1.4 billion 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 that was expected to hold 40 per cent of the business.

Spain has one of Europe’s largest fibre-optic broadband networks, but widespread overlap between operators has led to fierce competition. Investors, such as pension funds and private equity firms, have been attracted to fibre in recent years, given stable returns and low expenses once networks are deployed.

MasOrange is the result of a merger between Masmovil Ibercom and the Spanish operations of Orange. Orange has a 50 per cent stake, with the remainder controlled by three investment funds – Cinven, KKR & Co and Providence Equity Partners – and MasOrange’s chief executive officer, as well as others. REUTERS, BLOOMBERG