(Bloomberg) -- Digi Communications NV has agreed to sell part of its fiber networks in Spain to a consortium led by Macquarie Group Ltd. as it seeks funds to pay for its expansion plan in the country, including buying remedies from the Orange-Masmovil deal.

The Bucharest-based operator will hand the Australian investment firm its network in 12 Spanish provinces for as much as €750 million ($814 million), according to a regulatory filing on Friday. Digi’s network currently comprises about 4.25 million homes and plans to expand it to cover a total of 6 million homes gradually over the course of three years, it said.

Digi will use the proceeds to invest in Spain, its second-largest market after Romania, especially to buy €120 million worth of spectrum as part of the remedies of the deal between Orange SA’s Spanish unit and Masmovil. The fiber network sale to a Spanish unit controlled by a consortium of Macquarie Capital, abrdn and Arjun Infrastructure Partners is subject to regulatory approvals. 

Spain, which has Europe’s most extensive network of fiber to the home, has attracted a lot of investment in recent years, with managers like Macquarie, abrdn, Vauban Infrastructure Partners or Ardian SAS betting on the sector. Digi’s sale may be seen as the first of many deals involving telecom companies looking for cash and fiber operators seeking to increase their footprint and market share.

Digi began rolling out its own fiber networks in 2021, while using Telefonica SA’s infrastructure through a wholesale agreement that also gives it access to mobile coverage. The operator is poised to have its own mobile network, albeit small and patchy, through the spectrum it is set to buy from Orange and Masmovil.

Digi in 2023 made a deal with abrdn to fund the roll out of the fiber network in Andalusia. More than half of the project had been completed by October, the company said.

Macquarie created fiber-optic broadband provider Onivia in 2019 with the acquisition of Masmovil’s network. In May it said it planned to reach 4.1 million homes by year-end, from 3.6 million at the time. Onivia’s shareholders also include abrdn, Daiwa Energy & Infrastructure Co. and Arjun Infrastructure Partners. 

©2024 Bloomberg L.P.