Vodafone Group is set to miss out on more than €1.1 billion in deferred payments linked to its German broadband venture OXG after partner Patrick Drahi’s Altice agreed to sell its stake, according to the Financial Times.
Vodafone was due to receive €487 million in deferred payments and a further €595 million from Drahi’s Geodesia Holding, which held the stake managed by Altice. The payments were linked to OXG meeting specified business objectives.
However, the agreement has been disrupted by Société Générale’s deal to acquire Drahi’s stake. Sources cited by the Financial Times said the buyer would not be subject to the same commitments as Drahi, potentially leaving Vodafone without the payments.
Vodafone supported the sale when the agreement between Geodesia Holding and Société Générale was announced in September.
“The transaction secures a committed funding partner in OXG, enabling the continued expansion of its fibre network in Germany, while maintaining strategic flexibility for Vodafone,” Vodafone said.
Vodafone and Drahi’s Altice launched OXG in 2023, with each company taking a 50% stake in the German broadband venture.
OXG had committed to spending €7 billion on its fibre network buildout, with a target of reaching more than seven million homes in Germany by 2029.
However, the venture has struggled to meet its targets amid higher-than-expected costs. Its network currently reaches about one million homes.
Vodafone was due to receive the first deferred payment once OXG reached 1.5 million homes.
