Zegona Communications Share Discussion Threads

[dekle] 07/8/2017 09:05

Update. Although I have received notice of the payment of 71p it appears not yet actually been paid. I wait in hope.

[dekle] 04/8/2017 15:33

Received 71p dividend notice today paid 2/8/17. so what will the tender offer price be? Doesn't seem much interest here yet we got almost 50% of the share cost rebated by way of the dividend. Not sure why this share is being ignored unless I am missing something?

[dekle] 02/8/2017 10:56

Since he plan is to return £140m to shareholders via a tender offer then surely they will have to make it attractive to sell rather than offer just the current share price. This must mean an offer at a premium to the ruling share price?? Doesn't that make it an opportunity?

[bidmsa] 19/5/2017 11:49

have a look Euskaltel share price

Euskaltel SA
BME: EKT - May 19, 12:30 PM GMT+2
9.65EURPrice increase0.15 (1.59%)

[spectoacc] 18/5/2017 16:19

Yes reassuring to see them buying again up here.

[flagon] 18/5/2017 15:35

Multiple directors bought yesterday as well also we have Invesco topping up with just over 2.5m shares.

The last time there were multiple director buys the share price was at the 110p region.

[spectoacc] 18/5/2017 10:26

PDMR Number of Purchase Total percentage
Ordinary price holding of
Shares purchased (pence per Ordinary Shares
share) (rounded)
------------------ ------------------ ------------ -----------------
Eamonn O'Hare
Chief Executive
Officer 63,870 161.00 1.083%
------------------ ------------------ ------------ -----------------
Murray Scott
Non-Executive
Director 20,000 158.50 0.020%
------------------ ------------------ ------------ -----------------
Howard Kalika
Investment
Director 9,500 158.75 0.140%
------------------ ------------------ ------------ -----------------

[mad foetus] 03/4/2017 11:39

Yes although limited liquidity directly, I suspect most hold through MVI.

[eezymunny] 15/3/2017 11:25

I guess those liabilities simply transfer to the acquirer AoW. The Zegona company balance sheet has almost nothing on it.

Nothing wrong with a bit of prudence, we have no real idea what's going on.

[actofwill] 15/3/2017 11:18

Agree it seems that these liabilities could be recovered but will be subject to current negotiation I presume and not straight forward.

I think a range is 166-192p is prudent here.

[eezymunny] 15/3/2017 11:07

There are E51m of deferred tax liabilities in your total, that would presumably go with sale as they belong in the subsidiary. Until we hear some more we are swimming in the dark to a certain degree...

[actofwill] 15/3/2017 10:33

I see an implied value for ZEG of 163p share if Telecable is sold at EUR 750m. How does one get to 220p? I assume that PPE on b/s consolidated Telecable PPE. I hope to be wrong...

Calcs based on 30jun'16 numbers

NET cash GBP 30.5m
Takeover consideration GBP 653.3m
- Total liabilities GBP 358.2m
= GBP 325.6m
p / share GBp 166.1

[eezymunny] 15/3/2017 10:10

Tx for that. I think I prefer ZEG for quicker possible gratification. If this deal goes ahead the MVI NAV uplift is modest vs ZEG and I guess MVI would still trade at a discount. MVI discount is clearly significant so will have a further dig.

[spectoacc] 15/3/2017 09:59

Clearly still a big seller still around on MVI fwiw - another 150k sold at 135p.

[spectoacc] 15/3/2017 09:31

@Eezy - MVI is a little complex and best thought of as a p/e co with mainly listed holdings (see "Top 10" towards bottom of page):


Essentially, they're mainly ZEG & BCA. GLOO is a zombie waiting for a deal.

Edit - disadvantage of MVI is that you won't see a return anytime soon (including if you buy the realisation shares, MVIR, which are a total con IMO). Advantage is they're already on a big discount, and pay c.6% pa divi here. If you trust the likes of ZEG to keep performing, a la MRO, then MVI the way to play it IMO, if only for the double discount & yield.

[eezymunny] 15/3/2017 09:28

Indeed. ZEG could have a combination of cash and Euskaltel shares to the value of c. 220p by the looks. Dependent of course on exchange rates, tax and that E750m price tag.

Thanks for the MVI heads up. ZEG about 29% of MVI NAV, so a possible MVI NAV uplift of c. 12% if my sums are right? MVI a more complex beast - not sure I have the will to plough through all the holdings. Lazy sod...

[spectoacc] 15/3/2017 08:56

Sale of the asset rather than the co - ZEG will presumably deploy the cash buying something else, MRO-style - but the trade for me has been to buy MVI not ZEG. MVI hold c.43% of ZEG, trade at a c.35% discount, and are suffering an overhang from a fortnight ago, hence been able to buy more at 135.0001p.

Agree that I can't see ZEG selling it cheap - more likely not to sell than take a low-ball offer.

[eezymunny] 15/3/2017 08:51

Indeed. c. E750m mooted which might make ZEG worth c. 220p/share, in a combination of cash and shares. All a bit woolly but I've had a tiny few for the EEZY4 portfolio...

uk.advfn.com/cmn/fbb/thread.php3?id=30375760&from=1585

One wonders why they have announced this today when these talks have evidently been going on for some time...

[spectoacc] 15/3/2017 08:17

Fair to say everything depends on price and if it actually happens. But interesting RNS today nonetheless.

[robsy2] 08/2/2017 09:10

Yes thanks Flagon for finding and sharing.Not quite sure what it means though. Doing business in Spain is not easy, so I wish them well . I can imagine they will be having meetings with representatives from the local bank, the clergy, local politicians, the telco people , all very complicated I imagine and then there are the language difficulties and the politics and the agendas and backhanders and Spanish legislative backfdrop and the lawyers....
Still, the Basques are among the more serious Iberians and they actually quite like the Brits as well which may help.
R2

[mad foetus] 08/2/2017 07:18

Good work flagon.

[flagon] 07/2/2017 23:33

Euskaltel ‘close to deal’ with Zegona to create Spanish regional cable powerhouse
February 7, 2017

Spanish cable operator Euskaltel could be close to striking a deal with UK-based Zegona Communications to take over Zegona-owned Telecable, creating a regional cable powerhouse in northern Spain, according to local press.

According to Spanish financial daily Expansión, Euskaltel, which operates in the Basque Country and – via subsidiary R – in Galicia, is close to striking an agreement with Zegona to create a group with revenues of €750 million and EBITDA of €360 million.

According to the paper, the pair have been quietly discussing combining their operations for months, but have recently come close to achieving a consensus on the valuation of Asturias-based Telecable, the main hurdle in the way of a deal.

According to Expansión, the deal would likely see Euskaltel pay a mix of cash and shares for Telecable, making Zegona a shareholder of reference in the Basque operator alongside Kutxabank. Euskaltel would also initiate a capital increase, with Zegona subscribing through a payment in Telecable shares.

According to the paper, a deal would also allow the group to expand to other territories such as Cantabria, Navarra, La Rioja and Léon. It said that both groups had been in talks to roll out a network in Cantabria in partnership with local player Ibiocom, backed by the regional government.

The tie-up follows Zegona’s failure to expand outside the Asturias region by losing a battle to acquire mobile operator Yoigo to MásMóvil.

Zegona meanwhile has made some readjustments to its board and executive team. It has named finance director Dean Checkley as its new CFO in place of Howard Kalika, and appointed Rightmove non-executive director and former Engine Holding CFO Ashley Martin as an independent non-executive director.

Zegona said that Kalika would now focus on new investments and evaluating attractive opportunities across the European TMT space.

Martin will serve as chairman of the audit and risk committee and a member of the nomination and remuneration committee. Robert Samuelson will step down fro both committees, while Mark Brangstrup-Watts will step down from the audit and risk committee, meaning that both committees now comprise only non-executive directors.

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