Zegona Communications buys Spain's Telecable de Asturias

(ShareCast News) - Shares in Zegona Communications jumped almost 10% on Monday, after it agreed to buy Spanish telecoms provider Telecable de Asturias SA for €640m.The company, which floated on London's main market in March, said the deal will be funded by £251m in new equity, as well as a new debt facility struck with Goldman Sachs and the proceedings from its initial public offering."There is a significant opportunity to continue the impressive development of the Telecable business," said group chief executive Eamonn O'Hare."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."The share placing will see the company issue 167.3m shares at 150p each.Zegona shares were up 9.56% to 149.00p at 1055 BST on Monday.