Vodafone and Orange Are Overwhelmed: They Didn't Expect to Have So Much Support with This

Vodafone and Orange are surprised by the great acceptance their joint fiber optic project has received. Both operators have created a partnership to share their fiber infrastructure in the country. All this with the aim of improving coverage and the quality of their service.

However, what they didn't expect was the magnitude of the interest this project has sparked. Not only among users but also among investors.

The new joint fiber optic venture has caused such a high level of attraction that around 15 investment groups are interested in participating. To some extent, this makes sense.

Vodafone and Orange have managed to launch the largest fiber optic company in Spain, with more than 12 million homes covered. A true giant in the sector, which has put internationally renowned names on the investors' radar.

Vodafone and Orange offer a great opportunity

The reason for this interest lies in the value of this joint venture. With an approximate valuation of 10 billion euros, many funds and investment groups are willing to enter the business. Among those who have shown interest are major players like Apollo, KKR, Brookfield, CPPIB, Digital Bridge, GIP, and GIC.

Vodafone and Orange, in their strategy, intend to divest 40% of the joint venture. However, both companies will retain majority control of the company. This ensures that decision-making remains in their hands.

This strategy will allow them to receive a significant cash injection. Besides reducing their debt, it will help them improve their financial position to continue facing the challenges of the telecommunications market.

The share structure of the partnership will change with the entry of new investors. Orange would have 50% of the stake, while Vodafone would retain 10%. The remaining 40% would go to the third partner who would be part of this ambitious project.

Orange and Vodafone are a guarantee of success

This agreement is a clear sign that the fiber optic sector in Spain is in full expansion. The interest of large investment funds demonstrates the confidence in the future profitability of this business. The market remains competitive, and Vodafone and Orange are seizing the opportunity to strengthen their position through this joint venture.

The impact of this project will be significant for both users and operators. The expansion of fiber optic coverage will allow more households in Spain to access high-speed internet. Additionally, by reducing the operators' debt, it is expected that they can reinvest in the development of new technologies and services.