Zegona eyes increased stake in Spanish telco Euskaltel
AIM-listed telecommunications and media investor Zegona Communications intend to make a partial tender offer in cash to acquire as much as 14.9% of the outstanding shares in Spanish quadplay provider Euskaltel.
Zegona, which currently owns 15% of Euskaltel, told investors on Friday that it hoped to increase its stake in the firm to 29.9% via its tender offer of €7.75 per share - a premium of 18% to the Iberian firm's closing price on 18 October.
The London-based outfit's tender offer will be funded through a non-pre-emptive institutional placing of ordinary shares aimed at raising up to £225m.
Chairman and chief executive Eamonn O'Hare, said: "This significant incremental investment not only provides Euskaltel shareholders with a very attractive 18% premium but also reinforces Zegona's commitment and underlines our belief in the future potential of the Euskaltel business."
"In addition, we see opportunities where our industry knowledge and experience can be valuable to Euskaltel, and we look forward to continuing our constructive relationship with the leadership team to help return the business to growth."
As of 1015 BST, Zegona shares had picked up 2.91% to 114.75p.