Vodafone Group has completed the sale of 50% of its German FTTH company FibreCo to Altice.
The creation of the joint venture received European Commission approval last month. FibreCo plans to deploy FTTH networks to up to 7 million homes in Germany over a 6-year period.
Over the rollout period, FibreCo intends to invest up to around €7 billion, which will be partly financed by debt that will be non-recourse to Vodafone and Altice. Total debt facilities of up to €4.6 billion have been arranged with a group of leading financial institutions to support the network deployment, according to Vodafone.
Vodafone is expected to receive cash proceeds from Altice in excess of Vodafone’s share of equity contributions over time.
This partnership with Altice, announced in October 2022, is complementary to Vodafone’s upgrade plans for its existing hybrid coax-fibre cable network.