• Privacy policy
  • T&C’s
  • About Us
    • FAQ
    • Meet the Team
  • Contact us
TLE ONLINE SHOP!
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
  • JOBS
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
  • JOBS
No Result
View All Result
The London Economic
No Result
View All Result
Home Prices and Markets

Marwyn investment Zegona sells Telecable

Marwyn investment Zegona sells Telecable – Directors of Marwyn Value Investors Limited welcome the announcement made yesterday by its investee company, Zegona Communications plc (“Zegona”) confirming the completion of the sale of Zegona’s Spanish cable business, Telecable to Euskaltel, S.A. The transaction has generated significant upfront cash proceeds and Zegona intends promptly to return up to […]

Edward Marten by Edward Marten
2017-07-31 09:28
in Prices and Markets
FacebookTwitterLinkedinEmailWhatsapp

Marwyn investment Zegona sells Telecable – Directors of Marwyn Value Investors Limited welcome the announcement made yesterday by its investee company, Zegona Communications plc (“Zegona”) confirming the completion of the sale of Zegona’s Spanish cable business, Telecable to Euskaltel, S.A.

  • The transaction has generated significant upfront cash proceeds and Zegona intends promptly to return up to £140m to shareholders, representing 71p per share (44% of Zegona’s market capitalisation).
  • It plans to return capital through a tender offer conducted by an intermediary. Full details of the offer and the required general meeting3 will be set out in a circular to be sent to shareholders
  • Targeted 2017 dividend reconfirmed, £9.8m total pay-out (equivalent to 5p per existing Zegona share)
  • Total cash return to Zegona shareholders from the proposed tender offer and dividends to the end of 2017 equals 55% of initial equity invested, whilst still retaining exposure to underlying Euskaltel cash flows of similar magnitude to Telecable standalone

Zegona sees potential to drive additional value through its 15% shareholding in Euskaltel

  • Acquisition of Telecable establishes Euskaltel as the leading integrated telecoms operator in northern Spain with €711m Revenues, €346m EBITDA and €224m Cash Flow. Euskaltel’s increased scale and strong cash generation create a robust platform for growth
  • Substantial synergies available, valued by Euskaltel at €245m, equivalent to €1.37 per Euskaltel share
  • Opportunity to close the current Euskaltel value gap – Euskaltel trades at an Equity Free Cash Flow yield of 12%, versus European Cable average of 5%
  • Euskaltel Board strengthened by addition of Robert Samuelson (Zegona COO) and Jon James (ex ComHem COO)
  • Zegona expects to help drive Euskaltel performance improvement, leveraging its influence at the Euskatel Board and newly formed Strategy Committee10 and its positive relationship with Euskaltel’s largest shareholders
  • Zegona has the right to distribute Euskaltel stock to its shareholders without any lock-up and will continuously evaluate its investment position with the objective of optimising risk adjusted returns to shareholders

Zegona has also confirmed its intention to return GBP140 million to its shareholders by way of a tender offer, details of which are yet to be released. The Company will issue a further announcement in due course following confirmation by Zegona of the details of the tender offer.

At the date of this announcement, funds managed by Marwyn Asset Management Limited own 25.8 per cent. of the issued share capital of Zegona, of which the company indirectly holds approximately 21.3 per cent. of the issued share capital of Zegona.

MVI : Marwyn investment Zegona sells Telecable

RelatedPosts

Inflation is high, but it’s not here to stay

The boom and bust of Bitcoin: Where next for the turbulent cryptocurrency?

Has Bitcoin bottomed out?

Five reasons why Bitcoin could be stuck in a temporary rut

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending on TLE

  • All
  • trending
Abdollah

‘Rescue us’: Afghan teacher begs UK to help him escape Taliban

CHOMSKY: “If Corbyn had been elected, Britain would be pursuing a much more sane course”

What If We Got Rid Of Prisons?

More from TLE

Boris Johnson: UK will ‘contribute’ to NATO deployments if Russia invades Ukraine

Elevenses: Dosage Disparities

Boris Johnson constituent goes viral after she calls him a ‘filthy piece of toerag’

Youth worker was stabbed to death by a gang of up to six men after his car was rammed

UK police assisting probe into missing Sarm Heslop in US Virgin Islands

Testing in care homes ‘still very patchy’, says provider

Restaurant Review – Galley

Rayner: Mail splashes ‘No, Mister Speaker’ on front page as editor shuns meeting with Hoyle

Sleaford Mods are Playing Dismaland and They’re Pretty Happy About It

Horses ‘can read human emotions’

JOBS

FIND MORE JOBS

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Meet the Team
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.