According to persons familiar with the situation, Vodafone Group’s Spanish division is garnering acquisition interest from possible purchasers.
According to the sources, private equity and strategic bidders have approached the British telecoms business. While there is no official selling mechanism in place for the unit, Vodafone said it would accept offers at the right price.
Vodafone’s Spanish operation might be worth more than $4 billion (R72 billion), according to the sources, who asked not to be identified because they were talking secret information.
The discussions are ongoing, and there is no guarantee that the Spanish business will be sold. Vodafone’s spokesperson declined to comment.
Vodafone’s market share in Spain has been declining due to competition from incumbent carrier Telefónica, France’s Orange, and private equity-backed Masmovil Ibercom. From 2018 to 2022, its revenue in the nation declined 16% to around €4.2 billion (R83-billion).
Vodafone’s former CEO, Nick Read, attempted to merge with Orange and Masmovil in Spain last year, but was unsuccessful. Read stepped down at the end of 2022, and temporary CEO Margherita Della Valle has since downgraded Spain to a group of smaller divisions that includes Ireland and Greece. Colman Deegan left his position as CEO of Vodafone Spain in March.
Vodafone, located in Newbury, England, has been under pressure to streamline its business and explore mergers in order to unlock value for investors and recover a share price that has slumped about 60% in the previous five years.
Vodafone’s efforts have mainly proved fruitless. While it has sold minor operations in countries such as Hungary and a share in its mast unit, Vantage Towers, it has struggled with larger market transactions.
In addition to missing out on the Spain transaction, Vodafone turned down an offer for its Italian subsidiary from French telecoms tycoon Xavier Niel last year. However, months of discussions regarding a British merger with Three UK have yet to conclude.
Strategic investors and former rivals Niel, Emirates Telecommunications Group Company, and Liberty Global have purchased more than a fifth of Vodafone in the previous year, prompting concerns about their ability to influence strategy at the British conglomerate.
