Zegona Communications plc (LSE: ZEG) ("Zegona") is pleased to announce that AXA IM Alts (“AXA”), has signed a binding contract with Vodafone ONO, S.A.U. ("Vodafone Spain") and Telefónica España Filiales S.A.U. ("Telefónica") (together the "Parties") to acquire a 40% stake in FiberPass.

In March 2025 FiberPass started operations, with an ownership split of 63% Telefónica and 37% Vodafone Spain. FiberPass covers 3.7 million premises across Spain and provides the highest quality fibre-to-the-home ("FTTH") services for 1.4 million Vodafone Spain and Telefónica customers. Vodafone will use FiberPass to provide services to its existing and future retail and wholesale customers within the FiberPass footprint. Vodafone will generate upfront proceeds of €0.4bn from this transaction.

The ownership of FiberPass after the AXA investment will be 55% Telefónica, 40% AXA and 5% Vodafone Spain.

This transaction in combination with GIC’s recently announced investment in PremiumFiber, will deliver total upfront proceeds of €1.8bn to Vodafone. Vodafone will retain a 17% equity stake in PremiumFiber and 5% in FiberPass.

This transaction is subject to customary regulatory approvals and is expected to close in the first quarter of 2026.

Eamonn O’Hare, Chairman and CEO of Zegona, commented, "The AXA investment completes our transformation of Vodafone Spain’s fixed network strategy. The combination of FiberPass and PremiumFiber will give guaranteed access to a future-proof, all fibre, national network with attractive economic terms and will enable substantial cost savings across the business. Today’s transaction delivers on our commitment to monetise our FibreCo JVs. The upfront proceeds of €1.8bn from FiberPass and PremiumFiber provide Zegona with significant incremental financial flexibility and leave the company well positioned to execute a shareholder friendly capital allocation policy."