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Vodafone Spain to gain 1.4 bln euros from JV

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MasOrange to hold 58%, Vodafone Spain 17% in new company

(Changes sourcing and adds details, paragraphs 1-3)

Aug 4 (Reuters) - Singapore's sovereign wealth fund GIC

will take a 25% 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 ( ZEGLF ), the three companies said on Monday.

Following GIC's investment in the joint venture, MasOrange

will hold 58% of the firm and Vodafone Spain will have a 17%

stake, the companies said.

Vodafone Spain, which was acquired by Zegona in a 5 billion

euro ($5.79 billion) deal last year, will make 1.4 billion euros

of upfront proceeds from the joint venture, Zegona said in a

separate statement.

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 of the announcement of the deal were

also looking for an investor for the new venture who was

expected to hold 40% of the business.

The Financial Times first reported about GIC taking a stake

in the joint venture earlier on Monday.

($1 = 0.8647 euros)