(Alliance News) - Vodafone Group PLC and Zegona Communications PLC on Friday said Zegona has completed the acquisition of Vodafone Spain, with telecommunications veteran Jose Garcia named as chief executive officer.

Zegona, a London-based investor in Europe's telecommunications, media and technology sectors, also said it plans to change its financial year-end to March 31 from December 31, so following the publication of its half-year results its next annual report will cover the 15 months ending on that date.

Vodafone announced its agreement to sell Vodafone Spain, officially named Vodafone Holdings Europe SLU, to Zegona in October 2023 for EUR4.1 billion in cash and around EUR900 million in redeemable preference shares.

On Friday afternoon in London, Vodafone shares were up 0.3% at 75.00 pence. Zegona shares were up 1.2% at 263.00p each.

As part of the deal, Vodafone has also agreed to provide "certain services" to Vodafone Spain following completion. On Friday, it said it will continue to have a presence in Spain through its 'Innovation Hub' in Malaga.

The two companies entered various transitional and long-term agreements, including a brand licence deal permitting use of the Vodafone brand in Spain for up to 10 years post-completion.

Spanish authorities cleared the transaction, classified under listing rules as a reverse takeover of Zegona, earlier in May. In its new expanded form, Zegona's shares will be re-admitted to trading on the London Main Market on Monday.

"We have now completed the acquisition of Vodafone Spain and look forward to transforming the business and returning it to growth," proclaimed Zegona Chair & CEO Eamonn O'Hare, adding: "With our proven track record, we are confident we will improve the performance of Vodafone Spain whilst delivering significant value for shareholders."

Also on Friday, Zegona announced the appointment of Jose Garcia as Vodafone Spain's new CEO. He was previously CEO of Zegona investee Euskatel SA, a telecommunications operator in Spain's Basque region which "was restructured and fundamentally transformed" under his leadership before its sale to MasMovil Group for EUR3.5 billion, Zegona said.

From 2006 to 2015 he was CEO of Jazztel and "transformed [it] into a leading telecommunications brand...He was instrumental in delivering 4x revenue growth during that period". In 2015 Jazztel was acquired by French mobile operator Orange SA for EUR3.4 billion.

By Emma Curzon, Alliance News reporter

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