Business
MASMOVIL OFFER TO ACQUIRE EUSKALTEL
MASMOVIL OFFER TO ACQUIRE EUSKALTEL.
About this update from Zegona Communications Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7259T\n Zegona Communications PLC\n 29 March 2021\n \n \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 ZEGONA COMMUNICATIONS PLC (\"Zegona\")\n \n \n \n \n \n LEI: 213800ASI1VZL2ED4S65\n \n \n 29 March 2021\n \n \n \n \n MASMOVIL OFFER TO ACQUIRE EUSKALTEL VALUES ZEGONA AT £1.70 PER SHARE1\n \n Zegona Communications plc (\"Zegona\") today announces that a wholly-owned subsidiary of MasMovil Ibercom, S.A.U. (\"MasMovil\"), a portfolio company of the private equity funds KKR, Providence and Cinven, has launched a tender offer to acquire 100% of Euskaltel, S.A. (\"Euskaltel\") for €11.17 per share in cash (the \"Offer\"). Euskaltel is Zegona's Spanish telecoms investment and its main asset. Zegona is the lead shareholder in Euskaltel, owning 21.4% of the company (38.3 million shares).\n \n Attractive valuation for Euskaltel\n \n · MasMovil's Offer at €11.17 per share in cash values Euskaltel's equity at €2.0 billion, equating to an Enterprise Value of €3.5 billion2\n \n · The transaction represents a 27% premium to Euskaltel's 30-day VWAP3\n \n · The transaction values Euskaltel at 10.1x EBITDA and 21x Operating Cash Flow, a significant premium to European telecommunications multiples4\n \n Substantial value creation for Zegona shareholders\n \n · The Offer values Zegona's 21.4% shareholding at c.€428 million\n \n · This equates to a Zegona Underlying Asset Value of £1.70 per share1, which represents an 80% premium to Zegona's current share price (94.5p)5\n \n · The Offer represents a return on Zegona's Net Invested Capital of 87%6\n \n Euskaltel's largest shareholders committed to transaction\n \n · Euskaltel's three largest shareholders (Zegona, Kutxabank and Alba), who own over 52%, have entered into irrevocable undertakings to tender all their shares\n \n · Approach considered friendly and attractive by Euskaltel's Board - Euskaltel has entered into a Collaboration Agreement with MasMovil in relation to ...