Vodafone Group will reportedly miss out on more than €1.1 billion in deferred payments from German broadband venture OXG, after its partner Patrick Drahi’s Altice agreed a deal to sell its stake.

Financial Times reported Vodafone was set to receive deferred payments of €487 million and a further €595 million from Drahi’s Geodesia Holding, which held the stake that was managed by Altice, based on hitting business objectives.

That agreement has, however, been thrown into the water due to Societe General agreeing to acquire Drahi’s stake. The buyer will not be subject to the same commitments Drahi was, according to sources, meaning Vodafone will miss out.

In a statement released by Vodafone in September after the deal between Geodesia Holding and Societe Generale was agreed, the operator expressed support of the sale.

“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 partnered with Drahi’s Altice to launch OXG in 2023, with both companies taking a 50% stake in the business.

However, the entity has struggled to hit targets. FT reported OXG committed to spend €7 billion on its fibre buildout to more than seven million homes in Germany up to 2029, however it encountered higher than expected costs.

The network currently only reaches 1 million homes. Vodafone was due to receive the first of its deferred payments after reaching 1.5 million homes.

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