Business
MANAGEMENT INCREASES SHAREHOLDING IN ZEGONA TO 29%
MANAGEMENT INCREASES SHAREHOLDING IN ZEGONA TO 29%.
About this update from Zegona Communications Plc
[{"type":"text","content":"\n \n \n NOT FOR DISTRIBUTION, PUBLICATION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OR TO ANY US PERSON, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA\n OR ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN SPAIN)OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION, PUBLICATION OR RELEASE WOULD BE UNLAWFUL.\n \n \n \n \n \n \n \n \n \n \n \n ZEGONA COMMUNICATIONS PLC (\"Zegona\")\n \n \n \n \n \n \n LEI: 213800ASI1VZL2ED4S65\n \n \n \n 10 November 2022\n \n \n \n \n \n \n \n \n MANAGEMENT INCREASES ITS SHAREHOLDING IN ZEGONA TO 29%\n \n \n \n \n \n \n In 2021, Zegona sold its investment in Euskaltel S.A.1 (\"Euskaltel\") for €11.17 per share in cash. This valued Euskaltel's equity at €2.0 billion, which equated to an Enterprise Value of €3.5 billion (over 10x EBITDA and 21x Operating Cash Flow), a significant premium to European telecommunications multiples.\n 2\n Shortly after completing the sale, Zegona returned £335 million to its shareholders (over 90% of the proceeds) through a combination of a dividend and a tender offer to acquire Zegona shares at £1.535 per share (the \"Capital Return\").\n \n \n \n \n \n When announcing the Capital Return, management agreed to re-invest £2.5 million into Zegona. This would have involved issuing 1,734,451 new shares at a price of £1.44 per share\n 3\n . However, limits on the number of shares which could be issued at that time meant only 887,594 shares were issued. Yesterday, the balance of the shares\n 4\n were issued at the previously agreed price and as a result management increased its shareholding from 18.0\n 5\n % to 29.1%.\n 6\n \n \n \n \n \n Following last year's successful sale of Euskaltel, management has been looking for Zegona's next investment in the European Telecommunications market. We have been active on a number of proprietary transactions where we see material upside potential while maintaining strong financial discipline. This approach has served us well in the current macro-economic environment as we are now seeing an increased pipeline of even better opportunities where we have the potential to drive significant value.\n \n \n \n \n \n \n \n \n Enquiries\n \n \n \n \n \n \n \n \n \n Tavistock (Public Relations adviser - UK)\n \n \n ...