Vodafone to sell Spanish business to Zegona for up to €5bn

(Sharecast News) - Vodafone said on Tuesday that it has agreed to sell its Spanish business to Zegona Communications for up to €5bn.

The companies have also entered into an agreement whereby Vodafone will provide certain services to Vodafone Spain for a total annual service charge of around €110m.

Chief executive Margherita Della Valle said: "The sale of Vodafone Spain is a key step in right-sizing our portfolio for growth and will enable us to focus our resources in markets with sustainable structures and sufficient local scale.

"I would like to thank our entire team in Spain for their dedication to our customers and relentless determination to improve our organic performance. However, the market has been challenging with structurally low returns."