Spanish telecom firm Telefónica Group has agreed to divest a 45% stake in its fibre-to-the-home (FTTH) business in rural Spain for €1.02 billion to a French consortium of insurance firm Crédit Agricole Assurances (CAA) and asset management company Vauban Infrastructure Partners.

The parties will subsequently create a new company called Bluevia Fibra for commercializing and deploying an FTTH in Spain, especially in rural areas and with lesser overlap with other networks.

Gwenola Chambon — Vauban Infrastructure Partners CEO and founding partner said: “This operation leverages on our strong experience in Fiber, including with Credit Agricole Assurances through our Vauban Infra Fibre platform, and on our deep presence in the Spanish market.

“It is at the core of our strategy of building blue-chip partnership with industrial partners such as Telefonica, while helping create value for local communities and all stakeholders”.

Telefónica Group will retain the remaining 55% stake in Bluevia Fibra. The group’s subsidiaries Telefónica España and Telefónica Infra will hold 30% and 25% stakes, respectively of that.

The deal values 100% of Bluevia Fibra at €2.5 billion. The Spanish fiber optic network business will provide telecommunication services providers access to wholesale FTTH. Telefónica España will be the anchor client of Bluevia Fibra.

Bluevia Fibra is expected to have a network of five million premises by the year 2024. It will deliver ultrafast broadband access with a greener technology to underserved regions, claimed Telefónica Group.

Guillermo Ansaldo — Telefónica Infra CEO said: “We are very enthusiastic about the opportunity to partner with Crédit Agricole Assurances/Vauban and form a longstanding partnership together with Telefónica Spain, strengthening Telefónica Infra’s investment portfolio.

“With this new venture, Telefónica Infra now has FTTH vehicles in Spain, Germany and Brazil together with Telefónica’s operating units in each of those countries and in partnership with top tier institutions such as Crédit Agricole Assurances/Vauban, Allianz and CDPQ respectively”.

The deal, which is subject to regulatory approvals, is likely to close by the end of this year.

  Bluevia Fibra, Crédit Agricole, Crédit Agricole Assurances, fiber optic network, Guillermo Ansaldo, Gwenola Chambon, Spain, Telefónica, Telefónica España, Telefónica Group, Telefónica Infra, Vauban Infrastructure Partners