Zegona Communications Share Discussion Threads

[galles] 29/10/2021 20:30

Many thanks Skyship

[skyship] 29/10/2021 14:24

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 10:29

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 09:34

"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 09:26

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 09:12

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 08:43

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 07:32

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 06:42

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 20:14

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 17:57

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

[zoolook] 28/10/2021 13:59

The talk in the outlook statement in the half year report was all about finding a new acquisition; no mention of winding up. https://otp.tools.investis.com/clients/uk/zegona/rns/regulatory-story.aspx?cid=1048&newsid=1512183

[renewed1] 28/10/2021 13:40

Trouble here is capital could be tied up for some time before any value emerges.

[red ninja] 28/10/2021 13:09

No they plan to find another target to invest in.

[boystown] 28/10/2021 12:47

Do they plan to wind up now?

[skyship] 28/10/2021 12:17

Well, now on offer @ 105p. At a 27% discount now looks good value IMO.

[eezymunny] 21/10/2021 15:25

Zeg can usually be bought at a big discount: A round pound or below might start to entice me...

[skyship] 21/10/2021 14:56

Anyone have any views on ZEG going forward? Now on offer at 132p...

[eezymunny] 20/10/2021 16:56

I guess the fill amounts are dictated by how many of a particular brokers' clients tendered. Nominee account etc.

[red ninja] 20/10/2021 16:52

Boystown, Same here. Strangely I notice for HL account I retain 0.09% and for A J Bell I retained 1.7% of Zegonna shares. HL has the best result for the Tender, I tendered them all in both accounts.

[boystown] 20/10/2021 15:44

My HL account has just been credited - leaving me with 6 shares! :-)

[red ninja] 20/10/2021 15:24

Jane, I notice HL has split my Zegonna holdings in 2, the retained portion and the cash portion, it could be we'll see the cash tomorrow.

[jane deer] 20/10/2021 12:11

Red Ninja Thanks for your posts from someone also waiting for HL to pay out.

[red ninja] 19/10/2021 14:48

You'd think with digital platforms it would all be automated for this sort of thing I mean all the client holdings must be in a database, thus, all you need is a bit of software to sort it.