Spanish alternative operator Grupo MASMOVIL has announced that it will set up a new fibre-focused ‘NetCo’ alongside an undisclosed ‘InfraFund’ and retain a material minority stake in the venture. The NetCo will obtain financing from a leading international bank to acquire up to 1.078 million fibre ‘building units (BUs)’ from MASMOVIL. Of this figure, 245,000 BUs have already been deployed and the rest will be ready by mid-2023. Subject to final adjustments, the total consideration will be in the region of EUR385 million (USD435 million) to EUR414 million. MASMOVIL says it will contribute EUR60 million equity into the NetCo by the end of the deployment phase, in exchange for a material non-controlling stake in the new business.
In other news, MASMOVIL says it has reached an agreement with Orange Espana on bitstream access, under which both parties will deploy a total incremental fibre-to-the-home (FTTH) footprint of 2.20 million to 2.75 million BUs between 2020 and 2023. MASMOVIL has committed to deploy 500,000 of these BUs, and has the option to deploy a further 250,000, while the remainder will be deployed by Orange. The duo will have exclusive access to the other party’s new networks for 20 years.