Singapore sovereign wealth fund GIC Pte Ltd has agreed to set up a joint venture fibre optic network firm with Spanish telecommunication companies MasOrange and Vodafone Spain, with GIC holding a 25% stake, making it the second largest shareholder.
MasOrange will be the majority shareholder with a 58% stake while Vodafone Spain will hold 17%. They will contribute 12 million premises and five million customers to the joint venture, which will become the largest fibre optic network firm in Spain, the three partners say in a joint statement on August 4.
The financial terms were not disclosed.
According to Boon Chin Hau, chief investment officer of infrastructure at GIC, Spain’s fixed broadband market has “significant” growth potential.
The deal is pending regulatory approval and is expected to be completed by the end of the year.
GIC has been actively investing in Europe over the past year, including acquiring a minority stake in France’s largest independent fibre firm Vauban Infra Fibre, and partnering with US private equity firm EQT to buy a majority stake in UK energy infrastructure firm Calisen Group.
Last week, the wealth fund said it plans to raise its shareholding in Italian luxury fashion house Ermenegildo Zegna to 10%.
