Singapore’s sovereign wealth fund GIC is set to acquire a 25% stake in a new Spanish fibre optic broadband venture involving MasOrange and Vodafone Spain.

The investment is valued at around 1.4 billion euro (US$1.6 billion) and is expected to be announced soon.

GIC is a state-owned investment fund based in Singapore.

The broadband company was formed after Vodafone Spain, owned by Zegona Communications, agreed in January to partner with MasOrange on the project.

Zegona, a London-listed investment firm, is expected to hold a 10% stake in the venture.

The original plan for the joint venture included a search for an investor to take a 40% stake in the business.

Zegona completed its 5 billion euro (US$5.8 billion) acquisition of Vodafone Spain last year, marking Vodafone Group’s exit from the Spanish market.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Sovereign wealth funds increasingly target mature telecom markets through minority stakes

GIC’s Spanish investment follows a consistent pattern of taking 25% stakes in established telecom infrastructure companies.

The fund previously acquired a 25% stake in Brazil’s Algar Telecom for R$1.0 billion in 2018, demonstrating a strategic preference for minority positions that provide significant influence without operational control1.

This approach allows GIC to benefit from stable cash flows in essential infrastructure while partnering with experienced local operators who handle day-to-day management.

The €1.4 billion valuation for the Spanish venture’s 25% stake suggests the total enterprise is worth approximately €5.6 billion, indicating these infrastructure assets command premium valuations despite market maturity2.

2️⃣ Spain’s fiber market offers consolidation opportunities despite near-universal coverage

Spain achieved 95.2% fiber-to-the-premises coverage by 2024, making it one of Europe’s most developed markets, yet still attracts major infrastructure investment3.

Recent GIC developments