GIC takes 25% stake in Spain’s broadband venture

[SINGAPORE] Sovereign wealth fund GIC will acquire a 25 per cent stake in a fibre optic broadband venture between MasOrange, partly owned by France’s Orange, and Vodafone Spain, which is owned by Britain’s Zegona Communications, the three companies said on Monday (Aug 4).

Following GIC’s investment in the joint venture, MasOrange will hold 58 per cent of the firm and Vodafone Spain will have a 17 per cent stake, the companies said.

Singaporean state funds have been expanding in Europe with investments in infrastructure, renewables and luxury fashion brands, to take advantage of the comparatively cheaper and attractive valuations of European firms amid a stronger euro and rising US tariffs.

Singapore’s state investor Temasek invested over S$10 billion in Europe in the year ended March 2025. In late July, the company said it would raise its stake in Italian luxury fashion house Ermenegildo Zegna to 10 per cent.

Vodafone Spain, which was acquired by Zegona in a 5 billion euro (S$7.4 billion) deal last year, will make 1.4 billion euros in proceeds from the joint venture, Zegona said in a separate statement.

Zegona shares were up 2.3 per cent in London trading, after earlier rising as much as 3.9 per cent to hover near its record high of 905 pence.

The deal comes after Vodafone Spain agreed in January to create the new fibre network company in Spain with MasOrange.

The parties at the time were also looking for an investor that would hold 40 per cent of the new venture.

GIC, which reported its slowest pace of investment return growth in five years in July, said it continued to seek long-term opportunities, particularly in the infrastructure sector.

The Financial Times first reported on GIC taking a stake in the joint venture earlier on Monday. REUTERS