|
Zegona Communications PLC, which owns Vodafone Spain, plans to return €1.6 billion to shareholders, and lower debt after sealing deal-making proceeds of €1.8 billion. Zegona, a London-based investor in European telecommunications and media, said the €1.6 billion return includes a €1.4 billion special dividend, worth 162 pence per Zegona share, and €200 million share buyback programme. Shares in Zegona were up 1.5% to 1,370.00 pence each in London on Thursday morning. Zegona has a £10.55 billion market capitalisation. In addition, €200 million will be used to lower debt. This will help reduce leverage to 2.58 times, against a targeted range of 1.5x to 2.0x. This follows GIC Private Markets Pte Ltd’s investment in PremiumFiber, a joint venture between Vodafone Spain and MasOrange SA, announced in August, and the AXA SA investment in FiberPass, a joint venture between Vodafone Spain and Telefonica SA, announced on Tuesday. The two deals are expected to result in €1.8 billion of upfront cash proceeds for Vodafone Spain, €1.4 billion from PremiumFiber and €400 million from FiberPass. Zegona was a cash shell back in May 2024, when it bought Vodafone Holdings Europe SLU, the Spanish arm of Newbury, England-based Vodafone PLC, for €5 billion. Zegona said the special dividend will provide EJLSHM Funding Ltd, its parent company, with €975 million to settle the Vodafone financing in full and a €440 million pro rata payment for remaining ordinary shareholders. Settling the Vodafone financing will enable a 69% reduction in Zegona ordinary shares, the firm said. The share buyback will start on completion of the share reduction and Zegona believes this will ‘drive very attractive returns’ to shareholders. The programme will be conducted by Canaccord Genuity Ltd. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
