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LONDON (Alliance News) - Zegona Communications PLC on Monday said it has struck a deal to acquire Telecable de Asturias SA, a telecommunications provider operating in north west Spain, for EUR640 million.
Zegona said the deal will be funded by GBP251 million in new equity, funds from its recent initial public offering and a new debt facility arranged for the company by Goldman Sachs. In the share placing, Zegona will issue 167.3 million shares at 150 pence per share.
"There is a significant opportunity to continue the impressive development of the Telecable business. By combining the local knowledge of the team in Spain with the international experience and track record of Zegona, we have the right leadership to drive Telecable forward and deliver its full potential," said Zegona Chief Executive Eamonn O'Hare.
Zegona floated on the London Main Market in March with a strategy of acquiring and operating European telecommunications, media and technology businesses. It was established by O'Hare, who is the former chief financial officer of Virgin Media Inc, alongside Chief Operating Officer Robert Samuelson, who was the executive director of group strategy at Virgin Media Inc.
It is backed by Marwyn Value Investors LP and Woodford Investment Management LLP, the company headed by prominent City fund manager Neil Woodford. Marwyn said in a later statement on Monday that it will subscribe to GBP55 million of the new shares Zegona is issuing to fund the deal.
Zegona shares were trading higher on the deal, up 15% to 156.4999 pence on Monday morning, one of the best performers in the London Main Market in early trade.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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