Zegona Communications PLC - London-based investor in European telecommunications, media and technology sector - Raises EUR300 million from share placing, with the funds to go towards Zegona's acquisition of the Spanish arm of Vodafone Group PLC at an enterprise value of EUR5 billion, including debt. Zegona places 174.4 million new shares at 150 pence each. It intends to raise EUR8 million more via a retail offer at the same price via the PrimaryBid platform. The placing shares will represent 99% of Zegona's share capital upon admission to trading.
More importantly, Zegona will receive a EUR900 million investment indirectly from Vodafone. Vodafone Europe BV, a subsidiary of the FTSE 100-listed telecommunications provider, will subscribe for preference shares of a vehicle created for the Spanish deal, and this new entity will in turn subscribe for Zegona shares. The Spanish deal also will have debt financing.
Separately, Marwyn Value Investors Ltd says it invested GBP7.8 million in the Zegona share placing. Back in 2019, Marwyn Value Investors was Zegona's largest shareholder with a 19% stake, but it sold almost all of its shares in 2021 as part of a Zegona tender offer that it had demanded.
Zegona shares are suspended from trading in London as the Vodafone deal is classified as a reverse takeover.
By Tom Waite, Alliance News editor
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Zegona Com (ZEG)
Vodafone (VOD)
Marwyn Val. (MVI)