Last checked at 20 Jun 2016 07:00
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20 June 2016
Zegona Communications plc
Update on Yoigo Transaction
Following the announcement on 1st June that our exclusivity period with TeliaSonera has expired, the Board of Zegona has now decided to provide an update to shareholders on the Yoigo transaction.
Despite Zegona reaching agreement with TeliaSonera within the original exclusivity period and having fully agreed documentation and 100% underwritten financing, discussions with Yoigo's minority shareholders1 have not led to a full agreement.
In addition, the Zegona Board has been notified that there is another bidder interested in acquiring Yoigo. It is our understanding that this new bidder is willing to offer a price higher than that which Zegona considers to be fair and reasonable given the status of the business, our disciplined approach to valuation and our focus on shareholder returns. However, this higher offer is still conditional on due diligence, fully agreed documentation and the ability to secure significant financing.
Given the current uncertainty of this new bid and our expectation of greater clarity within a relatively short period, the Board considers it is in the best interest of shareholders that Zegona remains engaged in the Yoigo transaction. It is our intention to progress this transaction as we continue to evaluate the many attractive opportunities for additional acquisitions across the broader European TMT landscape.
1 The Yoigo shareholder structure is complex and any transaction requires the agreement of all four shareholders individually and in aggregate. The Yoigo shareholders are:
· TeliaSonera: 76.56%
· ACS: 17%. Publicly listed Spanish construction and infrastructure services business
· FCC: 3.44%. Publicly listed Spanish construction and infrastructure services business
· Abengoa: 3%. Publicly listed Spanish property business
For further information, please contact:
Tavistock (Public Relations adviser)
Tel: +44 (0)20 7920 3150
Matt Ridsdale - matt.ridsdale@tavistock.co.uk
Lulu Bridges - lulu.bridges@tavistock.co.uk
Mike Bartlett - mike.bartlett@tavistock.co.uk
This announcement, and the information contained herein, is not for viewing, release, distribution or publication, directly or indirectly, in or into the United States, Canada, Australia, the Republic of South Africa, Japan, or any other jurisdiction where applicable laws prohibit its release, distribution or publication, and will not be made available to any national, resident or citizen of the United States, Canada, Australia, the Republic of South Africa, or Japan. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this document comes must inform themselves about, and observe, any such restrictions. Any failure to comply with the restrictions may constitute a violation of the federal securities law of the United States and the laws of other jurisdictions.