Zegona Communications Share Discussion Threads

[oregano] 08/8/2016 15:08

i wonder if they are more likely to sell this on than buy something else. they last raised money at 160p, we are a long way from there, so slightly hamstrung in the M&A strategy. Happy if they sell obv, and getting paid to wait.

[mad foetus] 08/8/2016 14:31

Agreed, lets hope to see a decent rerating in H2

[elgordo] 08/8/2016 14:02

Yup, very encouraging, and getting their trades in before the close period and hopefully now busy lining up the next deal now that MasMovila appear to have got their bid for Yoigo financed.

[mysticmonkey] 08/8/2016 13:39

Some confident director buys lately

[davebowler] 11/7/2016 10:12

Liberum on MVI -a back door to Zegona at a big discount;
Liberum
Marwyn Value Investors* - Initiation
Undervalued high-performer
BUY
Target price 185p | Publication price 149p | *Corporate Client of Liberum

Marwyn Value Investors’ unique strategy has delivered 199% NAV return since 2006. Marwyn partners with proven management teams to implement a private equity investment strategy in listed sector-specific platforms pursuing buy-and-build strategies. The shares currently trade on a wide 30% discount to NAV (5.6% dividend yield) with potential catalysts including capital deployment and further upside from the existing portfolio. Buy.

Leading performer

NAV TR of 199% since 2006 (vs. 67% All Share return) driven by 2.6x realisation multiple. Marwyn ranks second amongst its PE/small-cap peer group over the time period.

Returning capital

The fund is committed to returning capital with 50% of net realisation gains returned to shareholders. Quarterly dividends currently equate to a 5.6% dividend yield.

Unique strategy

The fund backs leading management teams to create value through buy-and-build strategies. Marwyn has constructive influence over strategy and is often the largest investor.

Valuation

Marwyn now trades on a 30% discount to NAV. The price implies a 47% discount on Zegona and BCA positions (ex-cash and assuming 50% discount on remaining assets).

[pickledcabbage] 07/7/2016 08:16

We all like director buying!

[mad foetus] 20/6/2016 10:17

Quite an interesting RNS:

Update on Yoigo Transaction

Following the announcement on 1(st) June that our exclusivity period with TeliaSonera has expired, the Board of Zegona has now decided to provide an update to shareholders on the Yoigo transaction.

Despite Zegona reaching agreement with TeliaSonera within the original exclusivity period and having fully agreed documentation and 100% underwritten financing, discussions with Yoigo's minority shareholders(1) have not led to a full agreement.

In addition, the Zegona Board has been notified that there is another bidder interested in acquiring Yoigo. It is our understanding that this new bidder is willing to offer a price higher than that which Zegona considers to be fair and reasonable given the status of the business, our disciplined approach to valuation and our focus on shareholder returns. However, this higher offer is still conditional on due diligence, fully agreed documentation and the ability to secure significant financing.

Given the current uncertainty of this new bid and our expectation of greater clarity within a relatively short period, the Board considers it is in the best interest of shareholders that Zegona remains engaged in the Yoigo transaction. It is our intention to progress this transaction as we continue to evaluate the many attractive opportunities for additional acquisitions across the broader European TMT landscape.

(1) The Yoigo shareholder structure is complex and any transaction requires the agreement of all four shareholders individually and in aggregate. The Yoigo shareholders are:
-- TeliaSonera: 76.56%
-- ACS: 17%. Publicly listed Spanish construction and infrastructure services business
-- FCC: 3.44%. Publicly listed Spanish construction and infrastructure services business
-- Abengoa: 3%. Publicly listed Spanish property business

[pickledcabbage] 19/3/2016 15:08

Zegona confirms exclusive talks to buy Yoigo



...Zegona said that there was still no agreement, however, “even in principle”. It said that it had entered into an exclusivity agreement with TeliaSonera, the Swedish telecoms group that owns Yoigo, but added that other “stakeholders would also need to be involved in any transaction”.

Zegona said that the acquisition may be classed as a reverse takeover on the basis of the terms under discussion, which caused the company to request a temporary suspension of trading in its shares.

A price of about E500m has been rumoured for Yoigo, which has been put for sale in the past by TeliaSonera but without finding a buyer, while Zegona has a market capitalisation of about £250m.

The group has been backed by funds from investors such as Neil Woodford, Fidelity and Standard Life, but typically seeks to raise extra finance after it has agreed to a deal.

[mad foetus] 21/1/2016 08:46

I'm also interested in this through my MVI holding. If ZEG is looking to make further acquisitions (which they are) the recent market volatility may throw up opportunities.

[webpax] 20/1/2016 08:36

Shrewd investor John Rosier gives a good write up of the investment case:

[jonwig] 20/1/2016 08:30

Not me - but I hold MVI which has a big stake in ZEG. probably not easy to pick up stock here.

[webpax] 20/1/2016 08:29

I'm in here imranawan, I must admit I'm surprised by the lack of interest especially after they moved off AIM. Could be a FTSE-250 candidate one day as they are planning to grow by further acquisitions. I guess the question is how they will fund it.

[imranawan] 20/1/2016 08:05

Has anyone invested here?

[tradermel] 20/1/2016 07:55

An "all on track" sort of RNS, and of interest

[jonwig] 20/1/2016 07:54

Zegona reports accelerating momentum at telecable:

[jonwig] 27/7/2015 08:37

Acquisition, funded by a placing:



Marwyn Value Partners takes more, at 150p:



If ZEG itself is too scary, MVI at a 20% discount to latest NAV might be an alternative.

[jumbone] 20/3/2015 13:15

Will Zegona flip or trip?


By Theron Mohamed,
17 March 2015



Two former Virgin Media bosses, who oversaw the $24bn (£16.2bn) sale of the
media and telecoms provider to Liberty Global in 2013, think they have a knack
for flipping companies. Eamonn O'Hare and Robert Samuelson will float their new
investment vehicle, Zegona Communications, on London's Aim market this week.
The pair plan to acquire a struggling European network communications or entertainment company with a sound strategy and an enterprise value of £1bn to £3bn ‐ a bracket that includes the likes of Colt, Telecity and Entertainment One. Zegona will invest in the company and install new management to realise its full value, then sell it and return the proceeds to shareholders.

The strategy is reminiscent of Melrose, which buys struggling manufacturing businesses then flips them for a profit.


Management think the rapid growth of data consumption, market consolidation and the bundling of telecoms services are creating lucrative investment opportunities. For example, BT's acquisition of EE could force the telecoms giant to spin off a division to keep competition regulators happy.


Zegona has already raised £30m from big‐name investors such as Marwyn, Fidelity and famed fund manager Neil Woodford. That likely reflects its experienced management team: Mr. O'Hare was Tesco's finance chief before he moved to Virgin Media.


IC VIEW:

The question for investors is whether Zegona's management can consistently buy, revitalise and sell businesses. We'll wait for more information and the float before we make a recommendation.


Last IC view: None

[philanderer] 19/3/2015 16:06

Market Report: Zegona's warning to laggard telecoms and TV firms as it floats on AIM

[jumbone] 19/3/2015 13:17

Zegona has been established to execute a ‘Buy-Fix-Sell’ strategy in the European TMT sector, focusing on network-based communications and entertainment opportunities. Investments will target strategically sound businesses that require active change to realise full value, creating significant long-term returns through fundamental business improvements. The objective is to create a concentrated portfolio of sizeable assets with enterprise values in the range of £1 billion to £3 billion. Website: hxxp://www.zegona.com/


Shareholder
% holding following Admission
Number of shares


Marwyn Value Investors LP
40%
10,000,000


Woodford Investment Management LLP
10.83%
2,707,500


FIL Limited
10%
2,500,000


Hargreave Hale Ltd
7.08%
1,770,000


Eamonn O'Hare
6.10%
1,525,000


Wellington Management Company LLP
5.77%
1,442,500


Standard Life Investments
5%
1,250,000


Smith and Williamson Investment Management
3.33%
832,500


Robert Samuelson
3.05%
762,500


 
 
 


Total Closely held
91%
22,790,000


 
 
 


Total shares in issue
100%
25,000,000


 
 
 


Free Float
8.84%
2,210,000