Business
€1.8BN RETURN AND 69% REDUCTION IN ORDINARY SHARES
Zegona Communications plc announced a proposed capital allocation plan totaling €1.8 billion from recent FibreCo transactions, intending to return €1.6 billion to shareholders and reduce debt by €200 million. The shareholder return comprises a €1.4 billion special dividend, equivalent to £1.62 per ordinary share, which will provide €975 million to settle Vodafone financing and €440 million to other ordinary shareholders, alongside a €200 million share buyback program. Settling the Vodafone financing will result in a 69% reduction in Zegona's ordinary shares from 759 million to 236 million. The €200 million debt reduction will lower net debt to €3.4 billion and leverage to 2.58x, accelerating progress towards the company's leverage target. Disclaimer*
About this update from Zegona Communications Plc
[{"type":"text","content":"\n\n27 November 2025 LEI: 213800ASI1VZL2ED4S65\nZegona Communications plc\n€1.8bn Return and 69% Reduction in Zegona Ordinary Shares\nZegona Communications plc (LSE: ZEG) today announces the proposed allocation of the €1.8bn proceeds from the two recent FibreCo transactions1. The proposal is to return €1.6bn to shareholders and use the remaining €200m for debt reduction. The €1.6bn shareholder return includes a €1.4bn special dividend (£1.62 per Zegona ordinary share2) and a €200m share buyback programme3. The special dividend will provide EJLSHM Funding Limited (\"EJLSHM\") with €975m to settle the Vodafone financing in full4 and a €440m pro rata payment for remaining ordinary shareholders. Settling the Vodafone financing will enable a 69% reduction in Zegona ordinary shares.\n€1.4bn Special Dividend (£1.62 per Zegona Ordinary Share)\n\nThe special dividend will provide EJLSHM with €975m to settle the Vodafone financing in full.\nThe €975m includes a principal sum of €900m and €75m of accrued return4. €975m is equivalent to £1.62 per Zegona ordinary share held by EJLSHM.\nSettling the Vodafone financing in full will enable the cancellation of the 523m Zegona ordinary shares held by EJLSHM. This will reduce Zegona's ordinary shares in issue by 69% from 759m to 236m5.\nThe special dividend will provide a €440m pro rata payment to remaining ordinary shareholders. €440m is equivalent to £1.62 per Zegona ordinary share excluding those held by EJLSHM.\nThe special dividend repays the original equity capital raised for the Vodafone Spain acquisition6 plus an additional return of 12p. \n\n€200m Share Buyback Programme\n\nZegona will initiate the €200m share buyback programme following the cancellation of the 523m EJLSHM Zegona ordinary shares.\nZegona believes a share buyback programme will drive very attractive returns to shareholders post the 69% share count reduction.\n\n€200m Debt Reduction\n\n€200m of the proceeds will be used to reduce Net Debt to €3.4bn and reduce leverage to 2.58...