14th Jan 2019 17:40
LONDON (Alliance News) - Zegona Communications PLC confirmed Monday it has raised GBP100.5 million in a share placing worth 76% of its share capital.
Zegona placed 95.7 million shares at 105 pence per share. Shares in Zegona closed down 8.1% Monday at 110.25p each.
The 105p price represents a 13% discount to the company's middle market price Monday.
Earlier Monday Zegona, a company focused on acquiring European telecommunications, media, and technology firms, said it will use the proceeds of the placing to increase its ownership in Spanish telecommunications company Euskaltel SA.
Zegona also entered into loan agreements with Virgin Group and Barclays Bank PLC, to draw a maximum of GBP30 million, to aid with the investment in Euskaltel.
The company announced at the end of December it no longer intended to go ahead with its proposed tender offer to buy 15% of Euskaltel at EUR7.75 per share. Instead, Zegona will attempt to increase its Euskaltel holding by up to 13% through market purchases.
Zegona will increase its holding "at a price it considers attractive" and will then use its "increased influence" to work "constructively with the Euskaltel board of directors and management to improve the performance of the business".
Zegona currently holds a 15% stake in Euskaltel.
Related Shares:
Zegona Com