Vodafone to sell Spanish arm to Zegona for $5.3 bln

London: Vodafone will sell its Spanish business to Zegona Communications for 5 billion euros ($5.30 billion) in the second major deal by its new CEO to revamp a company struggling with little growth in mature markets.

Vodafone Chief Executive Margherita Della Valle, who has vowed to reshape the UK telecoms group to make it more profitable, said the sale would enable it to focus its resources in markets with “sustainable structures and sufficient local scale”.

Vodafone said it would receive at least 4.1 billion euros in cash. It will also provide 900 million euros in financing in the form of preference shares redeemable no later than six years after closing.