Link Securities | Telefónica informed the Nattional Securities Market Commission (CNMV) that its subsidiary, S.A.U. has reached an agreement with Vodafone ONO, S.A.U. (Vodafone España) for the establishment of a joint venture company, whose main corporate purpose is the commercialisation of a fibre-to-the-home (FTTH) network for the benefit of its partners, Telefónica España and Vodafone España, so that they can in turn provide retail and wholesale broadband access services.
The joint venture will cover approximately 3.6 million real estate units, with assets that currently form part of Telefónica de España’s fibre, representing approximately 12% of its national network. It is estimated that the combined company will initially have around 1.4 million customers, implying a penetration level of approximately 40%.
As part of the transaction, Telefónica will enter into a series of service contracts with the combined company. Following completion of the transaction, Telefónica España will hold 63% of the company and Vodafone España will hold the remaining 37%. The closing of the transaction is subject to regulatory approvals.
