Zegona completes Telecable acquisition, issues shares

UK-based investment group Zegona Communications has completed the acquisition of 100% of Spanish regional cable operator Telecable for €640 million.

Zegona is following up its acquisition by trading Telecable shares under the ZEG ticker on London’s AIM alternative investment stock market, making 192,326,724 ordinary shares available at nominal price of £0.01. Zegona has also issued a further 3,718,236 sharesat the same proce as part of its acquisition price.

The AIM listing is designed to make further resources available to the Asturias-based operator to increase and improve its services and make a converged offering available to its customers.

Zegona originally began trading on the AIM in March. The company, created by ex-Virgin Media executives Eamonn O’Hare as chairman and CEO and Robert Samuelson as COO, said at the time that it planned to make acquisitions in the European TMT sector with a ‘buy-fix-sell’ strategy.

The company’s plan is to make investments in sound businesses that require further changes to realize their full value. Zegona aims to create a portfolio of assets with enterprise values in the range of £1 billion to £3 billion.

Zegona is backed by institutional investors including Marwyn, Woodford & Co, Fidelity, Hargreave Hale, Wellington, Standard Life and Smith and Williamson.