Zegona Communications Share Discussion Threads

[dekle] 21/5/2021 18:28

Letter dated 28th but signed 30th

[redalert] 21/5/2021 15:07

directors must call a meeting within 21 days and the meeting to be held no more than 28 days after the meeting is called

[frazboy] 20/5/2021 10:29

Perhaps it's 21 days from receipt of the letter? Perhaps the term 'proceed to convene' is open to interpretation?As you said previously, when drawing such a huge salary, why rush to respond, draw it out a bit.I did wonder what golden parachutes were in the board's contracts - could be why MVI are happy for them to bat on with a smallish amount of cash.

[elsa7878] 20/5/2021 10:15

Perhaps it's 21 working days and therefore the 26th...?

[frazboy] 19/5/2021 10:22

Tick tock...

[elsa7878] 11/5/2021 16:28

Yes, the board want to retain some cash and get paid a £1 million a year each while they look for another acquisition...and who wouldn't!

[frazboy] 11/5/2021 16:21

Thanks elsa, "...to proceed to convene" - I understand how that's being read, I had originally taken it to mean, the meeting had to take place within 21 days. So, 8 days, until we must have further news of a potential GM. Question then becomes, how many days have they from the 19th May, until the GM? I'm not sure what the benefit of procrastination is to the Zegona board. Any thoughts?

[elsa7878] 11/5/2021 16:13

If they can't persuade Marwyn or large shareholders to oppose the request they will have to proceed with one. So by the 19th they will need to tell us when it will be and how we can vote etc.

[frazboy] 11/5/2021 15:41

11th May today, 19th May is the 21 day limit. How many days notice of a GM do they have to give, 7? Surely, some news imminently!?

[tiltonboy] 05/5/2021 13:48

I really don't know...lol...

[skyship] 05/5/2021 13:44

Tilts - quite right - certainly would seem duplicitous in the extreme if MVI then failed to provide a big pay-out to their own shareholders. All suggests that a further ZEG rise could provide a further 15p onto the NAV. That would take it to c196p; of which cash may be as high as 80%. Frankly the share structure is so opaque I can't work out what the position might be! Are the exchange shares for cancellation as per treasury shares in buybacks?

[red ninja] 05/5/2021 13:22

The value returned is £350/218.97 = £1.5984 Note, as £350 million is the stated minimum it could be slightly higher. 218.97 million is current shares in issue. There may be share options to take account of as well.

[tiltonboy] 04/5/2021 18:24

Pot/kettle still come to mind...lol... I would be happy if they left £20m in, and went again, but equally would be happy to take all cash. I would guess that ZEG would struggle to get enough support to stop it going through! MVI should now take some of their own advice and return ALL funds to shareholders!

[skyship] 04/5/2021 17:47

Any thoughts on that Tilts?

[elsa7878] 04/5/2021 16:14

And mine. Surprised the share price isn't climbing as an increased chance of a total payout has to be good news.....and 15% upside for holding for 5 months isn't to be sniffed at. Marwyn has nearly 20%...think it just needs a simple majority of votes.

[skyship] 04/5/2021 16:09

Well, that certainly sounds good - they'll have my vote... “That subject only to and conditional upon the completion of the announced sale by the Company of its Investment in Euskaltel, S.A ("Completion") the Company will promptly (and in any event within one month of Completion) return at least £350 million to its shareholders (by way of capital distribution, scheme of reconstruction or otherwise) and pending such return the Company makes no further investments or acquisitions."

[redalert] 04/5/2021 14:49

Skyship, for the life of me I cannot find the RNS (only the follow-up Alliance News item), however ZEG have now put one out

[tiltonboy] 04/5/2021 10:55

Pot/Kettle come to mind

[skyship] 04/5/2021 08:48

RedAlert - I'm sure we all are, especially MVI holders - of which I am one. Did you see a mention somewhere; as nothing from MVI that I can find? Bizarre that they should be seeking clarity when they control the game...

[redalert] 04/5/2021 07:52

marwyn seeking clarity regarding possible returns to shareholders re EUS

[pireric] 20/4/2021 15:46

I suspect for many investors its a mix of two things: 1) a perception that this is not being run for shareholders but management. Im not sure that is really true, if you look at the precise details of the incentive plans and the need for a 5% pa return hurdle rate. Combined with the track record of management pre and with Zegona. Frankly, investors might look at the share price chart and have reservations, without accounting for tenders and large dividends. 2) the historic liquidity discount this has had. Institutions outside of those in fundraisings have little reason to jump at the opportunity given its very small and used to be single asset with Euskaltel and Telecable. There was also a track record discount as I think there was a perception that Euskaltel was expensive and the ultimate crystallisation value could be lower than the trading share price. The institutional discount wont disappear as nothing has changed, but we've moved to a discount to hard cash versus a discount to trading assets. As a shareholder, there's a 20%+ uplift on a liquidation, and even if they dont do that, a replica of past deals would suggest a pretty good above inflation return pa plus potential for that discount to narrow at any point Eric

[cerrito] 20/4/2021 14:30

Yes pieric, it would be interesting to be a fly on the wall in the discussions they will have with MVI and Artemis as well as Fidelity, Canaccord etcet. I see that the EUS share price is very stable so the market is v comfortable that the deal will go through. The question I have difficulty answering is that given the adjusted NAV is £1.60 and the current buy price is £1.35 why am I so reluctant to buy more?

[pireric] 20/4/2021 07:30

"Zegona intends to consult with shareholders to understand their views on allocation of proceeds if and when the Offer is completed successfully" While the base assumption has to be that ZEG continues with its strategy in a new deal, if the lacklustre share price stays where it is, could well see some large shareholders tempted to request a cash out post Euskaltel, which would be around 160p accounting for preferred returns, MIP etc. Annual IRR they calculated with respect to Euskaltel was >10%. Hard to imagine that a big portion of the cash proceeds are not given back to shareholders Either way, discount to largely hard cash assets seems still harsh and must give large shareholders pause for thought about whether it makes sense to just close the NAV discount by requesting a cash distribution. Or to go again and try to earn a decent IRR as with past deals Eric

[dan_the_epic] 09/4/2021 11:44

Do not believe tax is an issue elsa. Look up substantial shareholdings exemption legislation that provides exemption in the uk from capital gains tax as written in their annual report. These boys have done a good job on their investments and have a good track record in industry which is why Zegona was set up in the first place. stock should be 150p min IMV