Business
ZEGONA ANNOUNCES SHARE BUYBACK PROGRAMME
ZEGONA ANNOUNCES SHARE BUYBACK PROGRAMME.
About this update from Zegona Communications Plc
[{"type":"text","content":"\n \nRNS Number : 9143Y Zegona Communications PLC 07 January 2020 \n\nNOT FOR DISTRIBUTION, PUBLICATION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OR CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE UNITED KINGDOM AND SPAIN) OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION, PUBLICATION OR RELEASE WOULD BE UNLAWFUL.\n \nZEGONA COMMUNICATIONS PLC (\"Zegona\")\n \nLEI: 213800ASI1VZL2ED4S65\n \n \n7 January 2020\n \n \nZEGONA ANNOUNCES SHARE BUYBACK PROGRAMME\n \nOn 2 December 2019, Zegona announced that its stake in Euskaltel and net cash position had a value of £1.41 per Zegona share1, which was 46% higher than its share price and that its Board was determined to take actions to close this differential. Since then, Zegona's share price has increased 14%, and high quality investors have made significant new investments. Fidelity Management & Research taking a 10%2 ownership position was a particular highlight. Despite these developments, the differential between Zegona's share price and the Underlying Asset Value per Share3 remains significant. \n \nZegona today announces a Buyback4 programme of its Ordinary Shares5 for an aggregate purchase price of up to £10 million. Zegona's Board has set a Buyback Policy6 that allows shares to be acquired at prices up to the Underlying Asset Value Per Share. The Buyback is expected to increase the Underlying Asset Value Per Share for shareholders who retain their holdings in Zegona.\n \nThe Buyback will commence with effect from today and share repurchases may be undertaken until the earlier of 31 March 2020 or when Zegona has fully utilised the allocated £10 million7. The Buyback will be funded from existing capital resources. As recently announced, Zegona has amended its Barclays credit facility, enabling the full undrawn amount of £20 million to be used for capital repurchases. In addition, Zegona has available cash of £23 million.\n \nThe Board will continue to review the progress made in closing the differential between Zegona's share price and the Underlying Asset Value Per Share.\n \nThis announcement contains inside information.\n \n \n \nENQUIRIES\n \nTavistock (Publi...