14th Jan 2019 12:28
LONDON (Alliance News) - Zegona Communications PLC said Monday it intends to raise GBP100 million following "good support" from existing and new investors.
Zegona plans to the place 95.2 million shares in the company at 101 pence each. Shares were down 4.3% Monday at 114.88p apiece.
Zegona, a company focused on acquiring European telecommunications, media, and technology firms, has also entered into loan agreements with Virgin Group and Barclays Bank PLC, to draw a maximum of GBP30 million.
Zegona will use the proceeds of the placing and loan to increase its ownership in Spanish telecommunications company Euskaltel SA.
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.
Zegona has entered a shareholder agreement with Talomon Capital Ltd, which holds a stake in both Zegona and Euskaltel. Under the agreement Talomon will increase its interest in Euskaltel to 2.4%.
Related Shares:
Zegona Com