Singapore’s GIC Pte Ltd has emerged as the frontrunner to acquire a significant minority stake in a Spanish fibre-optic broadband joint venture owned by MasOrange SL and Zegona Communications plc, according to sources familiar with the matter.
GIC is currently in discussions with the owners about purchasing a 20% to 30% stake in the venture. The deal could value the business—which covers over 12 million premises—at between €6 billion and €7 billion (US$6.9 billion to US$8.1 billion or RM29.3 billion to RM34.2 billion), including debt.
Although the talks are at an advanced stage, the agreement is not yet final and could still face delays or fall through, the sources said.
The joint venture was formed in January by Vodafone Spain (owned by Zegona) and MasOrange, with an estimated enterprise value of €8 billion to €10 billion. The companies had announced plans to bring in an investor for a 40% stake. Orange SA’s chief financial officer, Laurent Martinez, recently expressed confidence that the deal could be completed by year-end.
Spain boasts one of Europe’s most extensive fibre broadband networks. However, heavy competition due to overlapping coverage has impacted profitability. Despite this, the sector remains attractive to long-term investors like pension funds and private equity firms because of its stable returns and relatively low operating costs once the infrastructure is in place.
MasOrange was formed through the merger of Masmovil Ibercom SA and Orange’s Spanish operations. Orange holds a 50% share in the joint venture, while the remaining stake is owned by investment firms Cinven, KKR & Co., Providence Equity Partners, MasOrange’s CEO, and others.
Representatives for Orange, GIC, Zegona, Cinven, MasOrange, and KKR declined to comment, while Providence did not respond to inquiries.
