Vodafone Group completed the sale of a 50 per cent stake in joint venture FiberCo to Altice, paving the way for the new company to begin deploying FTTH services across Germany.
The UK-headquartered operator stated the sale to Altice was the final step to completing the FiberCo move after securing European Commission approval last month.
Terms of the deal stipulate Vodafone will receive cash proceeds from the French company “in excess of its equity contributions over time”.
In total, Vodafone will receive up to €1.2 billon from Altice, including an upfront €120 million at closing and deferred payments of up to €487 million as rollout progresses.
It can also include a €595 million pay-out based on performance.
Vodafone announced plans to create FiberCo along with Altice in October 2022, pledging to invest a combined €7 billion on fibre rollout across Germany.
In total, the companies plan to construct and operate an FTTH network covering 7 million homes in six years.
The bulk (80 per cent) of the deployment will be focused on house associations and upgrading Vodafone’s existing fibre cable network footprint, with the remaining 20 per cent outside its current footprint.
Vodafone added the partnership with Altice is complimentary to its upgrade plans for its existing hybrid fibre cable network.