Zegona Communications Share Discussion Threads

[boystown] 11/4/2023 07:34

So this shower have blown close to €5m in a year and have done nothing - other than write the longest-winded final results ever to say just that. Unbelievable.

[value hound] 08/9/2022 07:59

They're still mulling things over I see. Nice work if you can get it.

[skyship] 04/4/2022 09:42

Ahh - thnx for that. Problem with reading Annual Reports nowadays is that there is so much useless box-ticking, politically correct guff to plough past!

So, cE8.2m = c£6.9m = c£1.29. Still not bad, even at today's slightly improved sp; though of course the NAV is perhaps largely irrelevant as it will continue to tick down as salaries drawn and costs accrue.

[horndean eagle] 04/4/2022 09:34

Following the sale of its investment in Euskaltel, Zegona meets its day to day working capital requirements, including the costs of evaluating new acquisitions, from cash balances. At 3 April 2022, Zegona had approximately €9.2 million of cash and approximately €1.0 million of liabilities and we are already making progress on finding another attractive investment opportunity within the European TMT sector where we can again apply our successful Buy-Fix-Sell strategy.

[horndean eagle] 04/4/2022 09:33

They mentioned what the cash position is in commentary

[skyship] 04/4/2022 09:16

Hmm - not that easy tracing current Net Cash.

31st Dec'21 B/S shows cash & receivables of 10,753m; less liabilities of 1,563m = £9,190m.

Does seem too high however as that would give an NAV of 172.5p with 5.326m shares in issue. NAV previously reported at c155p at the time of Tender.

HE - how do you get your £1.17?

[horndean eagle] 04/4/2022 09:09

Net cash figure is wrong. It is circa £1.17 so not that attractive a discount given ongoing costs. Does depend on where they might do any fundraise though. I would assume they would want to do it at some form of premium.

[flyfisher] 04/4/2022 08:08

Attractive or obscene?

[value hound] 04/4/2022 07:42

Well, net cash of £9m, mkt cap £4.39m, and they're "actively pursuing a number of attractive opportunities and have recently participated in a number of transaction processes...."

But they're also actively pursuing their attractive salaries whilst doing so.

[skyship] 14/3/2022 15:21

Finals to Dec'20 were announced on 20th April last year. This time around we should have had an RNS by now as there was sod all to add up!

Hopefully we will hear that the NAV in cash is still over 100p; and the BOD have decided to wind-up as no hope of finding, funding and concluding a deal nowadays.

[ghhghh] 07/1/2022 16:10

The downside is the BoD remuneration. I assume c.£2m pa? Add in wind up costs

[value hound] 06/1/2022 22:57

I've bought a few of these FWIW, for obvious reasons (151p for 90p). The problem is that they haven't got enough money to do anything like the sort of deal they'll want to - so may need to raise more. OTOH, they could just call it a day and give the cash back - IF that was the decision from Marwyn / Artemis presumably?

[skyship] 16/12/2021 13:07

From 15th Oct'21:

The Baseline value is expected to be GBP6.7 million, or approximately GBP1.51 per each of the 4,437,973 shares outstanding.

[ghhghh] 16/12/2021 12:33

Does anyone know the current cash position? About £7.5m?

Thanks

[galles] 29/10/2021 21:30

Many thanks Skyship

[skyship] 29/10/2021 15:24

Red Ninja - most remiss of me - thnx for that.

So ZEG actually did well twice. Redeemed via tender 99.8% @ 200p (Oct'17); then c15months later (Jan'19) went around for a 2nd time:

"A total of 95,715,728 ordinary shares of GBP0.01 each in the equity capital of Zegona (the "Placing Shares") have been placed by Barclays Bank PLC, acting through its investment bank ("Barclays") and Oakley Advisory Limited ("Oakley") at a price of 105 pence per Placing Share (the "Placing Price"), raising gross proceeds of approximately GBP100.5 million. The Placing Shares being issued represent approximately 75.8 per cent. of Zegona's issued ordinary share capital prior to the Placing.

The Placing Price of 105 pence each represents a discount of 12.5 per cent. to the middle market price at the time at which Zegona and Barclays and Oakley agreed the Placing Price."

[red ninja] 29/10/2021 11:29

Mmm, that is not strictly accurate.

Zegonna started with Telecable and sold that to Euskatel.

On selling Telecable it announced a £2 tender offer for shareholders which was 99.8% taken uo.

It went on to raise new funds and took up a stake in Euskatel which it further increased.
It has also examined other potential investments in the past.

So Euskatel was it's second deal and it looks like it will do a third.

I agree timing of when to buy in would see you maximise your profits here.

https://www.investegate.co.uk/zegona-comm-plc--zeg-/rns/zegona-to-acquire-telecable-de-asturias-for-eu640m/201507270700141000U/

[skyship] 29/10/2021 10:34

"What was their track record like before the Euskaltel takeover?"

ZEG was a single purchase shell for Euskatel. It paid off rather well...eventually; and I think only for those who joined the game late.

[boystown] 29/10/2021 10:26

Same here - they have a vested interest in playing things out for a year or more before it becomes too embarrassing, then they identify an excellent opportunity etc., for which they need to raise funds. What was their track record like before the Euskaltel takeover?

[eezymunny] 29/10/2021 10:12

Boystown. I suspect big shareholders forced the big tender.

Little left to play with. I worry that they'll burn through cash and never get another deal done. Current cash c. 8m and corp overheads are quite high (tho hard to predict going forward?).

I'm gonna steer clear.

[red ninja] 29/10/2021 09:43

I believe the current funds will pay for the ongoing office/analysts cost, presumably when the choose their new investment/s they will raise more cash ?

[boystown] 29/10/2021 08:32

So why did they leave themselves with such a small war chest - relatively speaking - to fund new acquisitions?

Wouldn't it have been wiser to do a smaller % tender?

[skyship] 29/10/2021 07:42

Galles - see the RNSs of 15/10 & 26/10. Management have just subscribed for 15.9% of where we are now at 143.8p (They now hold 17.9%) - the underlying NAV, which is all cash:

https://uk.advfn.com/stock-market/london/zegona-communications-ZEG/share-news/Zegona-Communications-PLC-Management-Subscription/86364682

https://uk.advfn.com/stock-market/london/zegona-communications-ZEG/share-news/Zegona-Communications-PLC-ZEGONA-SUCCESSFULLY-COMP/86291608

[galles] 28/10/2021 21:14

Hi Skyship, could you share how you worked out the remaining cash left in the company?I sold the remaining shares after receiving the cash, which turns out well in hindsight, but if there is such a discount, I might buy back in again and wait for their next acquisition.

[zoolook] 28/10/2021 18:57

So how would this likely play out if they identified an acquisition - rights issue?