January 19, 2021

Zegona will double its stake in Euskaltel to be the largest shareholder | Economy

Zegona will double its stake in Euskaltel to be the largest shareholder | Economy



The British investment fund Zegona will double its stake in Euskaltel to 29.9% through a voluntary partial public offering in cash to acquire an additional stake of up to 14.9% of the capital at a price of 7.75 euros per action, which means a disbursement of up to 206.3 million euros, with a premium of 18% on Thursday's stock market closing of the company's securities, the fund announced in a statement on Friday.

If the offer prospers, Zegona, the second shareholder of the company with 15% of the share capital, would become the first shareholder of the Basque cable company, surpassing Kutxabank, current reference shareholder with 21% of the capital.

With this operation, the British fund specialized in telecommunications and founded by two former executives of Virgin, aims to achieve a greater participation in the board of directors of Euskaltel, as acknowledged in its note. "This will offer Zegona's senior management the opportunity to apply their extensive knowledge and experience in the sector to add value to the business and help it develop its full potential," he adds.

The fund has not hidden its disagreements with the current management team and has criticized the bad evolution in the stock market. In fact, he openly admits in his note that he has had conversations for the incorporation into Euskaltel of José Miguel García, former CEO of Jazztel and the architect of his success until it was acquired by Orange.

Collaboration with Virgin

Zegona, which became part of Euskaltel when it bought the Asturian Telecable of which it was the largest shareholder in 2015, invites Euskaltel to use the Virgin brand "in attractive conditions for expansion in new regions," he says.

Officially Euskaltel positively valued the operation announced by Zegona, considering that "the interest of a shareholder to increase its participation in the company confirms the strength of the project and the confidence of the shareholders of Euskaltel in the current trajectory and in the future evolution of the business of the company".

Investors have also received the transaction positively and the Euskaltel group share has risen 13.74% on the stock market after the announcement of the British investment fund

.



Source link