19th Oct 2018 12:22
LONDON (Alliance News) - Telecoms investor Zegona Communications PLC said on Friday it will make a partial tender offer in cash to acquire up to 14.9% of the shares in Spanish telecommunications company Euskatel SA at a price of EUR7.75 per share.
This is set to double Zegona's shareholding in Euskatel to 29.9% from 15%.
The offer will be funded through a placing of shares in Zegona to raise GBP225 million, with this fully underwritten by Barclays Bank.
Zegona said that increasing its ownership of Eustakel would allow it greater participation on the Spanish company's board, so that it can use its sector knowledge and experience to add value to the business, which offers broadband, mobile phone and cable television services in northern Spain.
"We are delighted today to announce our intention to make an offer to acquire up to 14.9% of Euskaltel at a price of EUR7.75 per share. If this offer were accepted in full, Zegona would almost double its ownership in the business to 29.9%. This significant incremental investment not only provides Euskaltel shareholders with a very attractive 18% premium but also reinforces Zegona's commitment and underlines our belief in the future potential of the Euskaltel business," said Chairman & Chief Executive Officer Eamonn O'Hare.
Shares in Zegona Communications were up 2.9% at 114.75 pence on Friday.
Related Shares:
Zegona Com