18th Mar 2016 13:25
LONDON (Alliance News) - Zegona Communications PLC Friday confirmed media speculation that it is set to potentially acquire Spanish mobile telecommunications firm Yoigo.
The Financial Conduct Authority slightly earlier Friday said Zegona Communications has had its shares temporarily suspended from trading pending the announcement.
"Zegona can confirm it has entered into an exclusivity agreement with TeliaSonera, the parent company of Yoigo in relation to Yoigo's acquisition. Various stakeholders would also need to be involved in any transaction and the company has no agreement, even in principle with them. The current negotiations may not result in the execution of binding acquisition agreements," said the company.
"On the basis of the terms currently under discussion, the consideration for the acquisition may cause the transaction to be classified as a reverse takeover under the FCA Listing Rules and therefore the company has requested the temporary suspension of trading in its ordinary shares," it added.
By Joshua Warner; [email protected]; @JoshAlliance
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