Vodafone Group has agreed to sell its Spanish unit to Zegona Communications for at least 4.1 billion euros ($4.35 billion) in cash and up to EUR900 million in redeemable preference shares.

The U.K.-based telecommunications group on Tuesday said that as part of the deal, it also entered an agreement with the European telecommunications investment company for Vodafone to provide certain services to Vodafone Spain for a charge of around EUR110 million a year.