Zegona is clear about his intentions for Vodafone. The venture capital fund already has a development plan for the British operator’s Spanish subsidiary. As is usually the case in the activities of companies of this type, the new owner of the telecom company plans to make his presence on the national market profitable from the first minute. And once they give you the numbers, resell the business.

That’s what the investment fund said when it announced it would pay 5 billion euros for Vodafone’s business. “We do not believe that our plan will last longer than seven years,” Zegona explained at a press conference as soon as the operation became official. A maneuver reminiscent of the one he had already done in TV cable And Euskaltel. The first of them was acquired for 640 million euros. Just 24 months later he sold it to Euskaltel for 686 million and an obligation to take over its shareholding. The end of the operator ended in 2021, when the investment fund received production of 2 billion euros.

The situation with Vodafone was almost idyllic for Zegona, which made the investment. The parent company itself reviewed the situation with the Spanish subsidiary, so the investment fund began to count in order to be able to make a profit in the company in trouble and exit it within a few years. The operator showed losses quarter after quarter, and only loans saved Vodafone Spain from even greater harm. In fact, losses exceeded €383 million in the last financial year.

Zegona clearly knows what needs to be done to restore profitability. Selling assets and implementing a workforce adaptation plan are its priorities, this newspaper reported. Moreover, as it turned out Eamonn O’Hara, the company’s president, is looking to simplify the business model and regain market share. That is, eliminate those niches in which profitability is low or generate losses, and intensify the price war in which the European market finds itself.

Zegona also believes it can grow in other segments of the national market, such as B2B, one of Vodafone’s main businesses today, and wholesale trade, where the British operator rents out its network to other companies operating in Spain. Venture fund exploring various alternatives to improve profitability of your infrastructure fixed.

“If you want to attract customers, the only option is to reduce prices. Digi or Finetwork are prime examples in this sector. There is only one way to gain market share,” a source from the telecom sector told the newspaper.

Zegona’s president stressed that the acquisition of Vodafone Spain “is a great opportunity.” The manager noted that the group is “excited” about the opportunity to return to the Spanish telecommunications market.

Dance of managers

To implement the plan, the investment fund intends to restructure its management. In fact, Eamonn O’Hara has assured that he is in talks with José Miguel García to become CEO in this new phase of Vodafone Spain. García was already involved with the fund, having been CEO of Euskaltel before its sale to MásMóvil.

But according to sources interviewed, the arrival of a new CEO will not be the only one, as Garcia intends to surround himself with people he knows from previous stages and who have experience in situations similar to those that Vodafone is currently experiencing. .

It is worth recalling that the British company changed its executive committee after it was announced that Antonio Coimbra, then president of Vodafone Spain, will not renew his mandate. His position was taken by Mario Vaz, who also holds the position of CEO.

The operator announced the appointment of Ignacio Roman as the new director of the consumer division for private clients, and at the end of June Federico Col was appointed director of strategy and transformation.

In addition, on November 15, the operator officially announced the appointment of Jesus Suso as the new director of the business unit, replacing Daniel Jimenez. This arrival will take place in accordance with Zegona’s new plans.

Internal company sources admit that within hours of receiving the news “they were unsure” and they claim that “meetings took place throughout the day in which managers acknowledged the possibility that much of the management would be transferred in the coming months as the venture capital fund took over Vodafone.