Romanian telecom Digi Communications (BVB: Digi) announced on April 5  that it struck a deal with a consortium led by financial conglomerate Macquarie to pass on its Spanish fiber optic network to the home (FTTH) for a consideration of EUR 750 million. 

Digi will use the money to roll out its mobile network in Spain, including by developing a proprietary mobile network.

Upon announcing the deal, Digi's shares rose by 7.4%, bringing the company's market capitalization to RON 5.5 billion (EUR 1.1 billion).

The FTTH network is operated by Digi's Spanish subsidiary, Digi Spain Telecom. 

The buyer is Sota Investments Spain OpCo, a company controlled by a consortium comprising Macquarie Capital, abrdn, and Arjun Infrastructure Partners.

Digi has developed its FTTH network in Spain from scratch within several years.  The network has been deployed to 4.25 million homes in 12 local provinces, including Madrid, and targets 6 million homes. The deployment of the rest of the network will be carried out gradually over an estimated period of three years. 

The Romanian group now targets the country's mobile market, after last year it bought for EUR 120 million some relevant assets that MasMobil had to sell to meet regulatory requirements for the merger with Orange.

iulian@romania-insider.com

(Photo source: the company)