Share Name Share Symbol Market Type Share ISIN Share Description
Zegona Communications Plc LSE:ZEG London Ordinary Share GB00BVGBY890 ORD �0.01
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 147.50 180,074 08:00:05
Bid Price Offer Price High Price Low Price Open Price
145.00 150.00 147.50 147.00 147.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mobile Telecommunications 12.44 5.35 28.8 323
Last Trade Time Trade Type Trade Size Trade Price Currency
16:31:13 O 50,000 148.00 GBX

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Date Time Title Posts
18/6/202113:33Zegona Communications265

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Zegona Communications (ZEG) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2021-06-23 17:31:13148.0050,00074,000.00O
2021-06-23 15:24:44148.50125,000185,625.00O
2021-06-23 14:30:40146.485,0007,324.00O
2021-06-23 11:20:58145.5274107.68O
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Zegona Communications (ZEG) Top Chat Posts

Zegona Communications Daily Update: Zegona Communications Plc is listed in the Mobile Telecommunications sector of the London Stock Exchange with ticker ZEG. The last closing price for Zegona Communications was 147.50p.
Zegona Communications Plc has a 4 week average price of 144p and a 12 week average price of 133p.
The 1 year high share price is 148.50p while the 1 year low share price is currently 93p.
There are currently 218,970,076 shares in issue and the average daily traded volume is 267,390 shares. The market capitalisation of Zegona Communications Plc is £322,980,862.10.
pireric: 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
pireric: "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
stemis: In accordance with the rules of the incentive arrangements , Zegona management redeemed its Management Shares on 25 June 2020, in advance of expected closed periods. Despite Zegona's Underlying Asset Value being above the Preferred Return, Zegona's Market Capitalisation was below the Preferred Return and therefore no value was received by management in respect of the first Calculation Period. A new Calculation Period commenced on 25 June 2020 with the Baseline value set at the higher of Zegona's Market Capitalisation and its Net Shareholder Invested Capital on this date. The new Baseline value is £0.955 per Zegona share. The renewal of the Management Share rights will be subject to approval by Zegona's shareholders at its 2021 AGM. Not sure what the definition of 'net shareholder invested capital' is but at most compared to current NAV, the value of the incentive arrangement is 12p a share.
hugepants: copied from MVI thread; davebowler29 Mar '21 - 10:29 - 1654 of 1655 0 0 0 Liberum; Significant NAV uplift from Euskaltel bid Mkt Cap £61m | Prem/(disc) -33.1% | Div yield 2.1% Event Masmovil yesterday announced a takeover bid for Euskaltel worth almost €2bn. Euskaltel is a quad-play telecoms provider in the North of Spain The largest shareholder in Euskaletel is Zegona Communications, which is the biggest position in MVI's portfolio. Zegona accounts for approximately 33% of MVI's NAV (based on Friday's closing price). Zegona's large shareholding in Euskaltel originated when it sold Telecable to Euskaltel in 2017 in a cash and share transaction. Masmovil's offer of €11.17 per share in cash for Euskaltel has the agreement of 52.3% of shareholders. The offer price represents a 16.5% premium to Friday's closing price. The offer is conditional on receiving at least 75% acceptance. The transaction values Euskaltel at 10.1x EBITDA and 21x operating cash flow. Liberum view A transaction between Masmovil and Euskaltel has been speculated for a number of years. Assuming the takeover completes, the transaction should be highly accretive for Zegona shareholders. Based on Friday's closing price, Zegona's market cap is £207m and the company's 21.4% stake in Euskaltel is valued at €428m (£363m) at the offer price. Zegona also has a small net cash position resulting in an underlying asset value per share of 170p (80% premium to Friday's price). Zegona’s share price has risen by 32% so far this morning. We would expect the majority of capital received by Zegona to be returned to shareholders.
felix99: You have got to remember both MVI and ZEG mgt have their noses in the trough here before shareholders see any cash. Secondly you have no idea if the cash is to be returned or they use it for a new investment. Incentive Scheme Incentive scheme arrangements were put in place at Zegona's inception in 2015 to create incentives for Zegona's management team and for Marwyn as the original core shareholder of Zegona. Members of Zegona's management team have been issued Class A Ordinary Shares in the Company's subsidiary, Zegona Limited ("Management Shares") in connection with their employee arrangements and Marwyn was issued Class B Ordinary Shares ("Core Investor Shares"). Management Incentive arrangements The holders of the Management Shares are entitled to 15% of the growth in value of Zegona during a series of separate Calculation Periods, provided that ordinary shareholders achieve a 5% Preferred Return in each Calculation Period. The first Calculation Period began on 14 August 2015, with management having the right to redeem its Management Shares at any time between the third and fifth anniversaries of this date.
pireric: I suspect what the share price does will be important, cart. You could sense the frustration of top management that the share price lingered below where was justified by NAV for a long time. On one hand, might prompt them to liquidate. On the other hand, they might look at the Euskaltel ROI they generated and just fuel them to go again. Either way, dont think this trades at more than a 15% discount to current NAV so 145p min Eric
hugepants: This is what ZEG said in October; "At the Euskaltel share price of €9.03 on 30 September, Zegona's holding in Euskaltel, together with its current net cash position, is worth the equivalent of £1.46 per Zegona share2. This value is over 31% higher than Zegona's current share price of £1.113." Has anyone worked out a current estimate? The euro has drifted 5% versus sterling since that date. However ZEG shares are just 93.7p to buy now versus 1.113. The Eusklatel share price is only down about 1.5%. I reckon the value of the Eusklatel shares has increased to about 44% above the current value of ZEG.
hugepants: Euskaltel share price has been drifting but its up 3% today. I assume the strength of sterling has caused ZEG price weakness
hugepants: "At the Euskaltel share price of €9.03 on 30 September, Zegona's holding in Euskaltel, together with its current net cash position, is worth the equivalent of £1.46 per Zegona share2. This value is over 31% higher than Zegona's current share price of £1.113." The discount must be bigger now. The above compares with the current situation ie. Euskaltel share price currently E9.18 and the ZEG share price is 105p. Note Euro/Sterling exchange rate is down 3% from 30 sept ZEG said this in the interims; "Zegona is fully aware that should it conclude it is no longer appropriate to retain its investment in Euskaltel, any material discount at which Zegona trades to the underlying value of its assets can be closed in a number of ways. These include, but are not limited to, the distribution in-specie of Zegona's interest in Euskaltel to its shareholders. Both the timing and process for any actions would be driven by what creates most value for shareholders. Zegona believes that, if it decides to monetise its Euskaltel stake, its greater than 21% ownership and lead shareholder status have strategic value, creating the potential to deliver a premium above the value of the individual shares."
cerrito: The prize for the most uncooperative IR department must go to Zegona. I am looking at getting back into these as I have had a good experience in the past and looking to get Soanish exposure. Trying to work out the current value of their net assets, I emailed them asking them to send me the total number of shares in Euskaltel they own. An easy enough question but they pointed me to their December 2 RNS. I gather from their website that EUS have 178m shares which as a 21.3% holder would give Zeg37.9m shares which at today’s share price of E8.6 gives us E326m. Add to this other net assets of E25m gives us E351m. At today’s exchange rate of 0.84 that gives us £295m. Also unhelpfully Zeg in their share buy back RNS do not give us the total shares outstanding but I got 220m from the ZEG website. This give us NAV per share of £1.34. I had expected it to be lower than the December 2 RNS figure given both the fall in the EUS share price and the strengthening of the £ against the Euro. First appreciate if people can check my maths. If my maths are correct, this is still a decent discount. My question to myself if it is big enough for me to get involved in the Spanish telco market-the last time I came across it was 10 years ago or so when I was a shareholder in VOD who were then complaining of very thin profitability in the then Spanish mobile market. I see that two Basque banks have 20% shareholdings in EUS –no surprise as they were founding shareholders- and there is some speculation in the Spanish press that they want out. I have no idea if that is true and if true what effect it would have on the share price Also will the discount between ZEG’s share price and the NAV narrow or widen? Not an academic question given the largest shareholder with 19% is MVI and there must be questions on its viability. Views welcome
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