Zegona Communications says it will continue its ‘Buy-Fix-Sell’ strategy across the European technology, media and telecom (TMT) sector once it exits the Spanish market.
In a statement it says: “we see a very healthy environment for investments across the broader TMT industry. The market is large and fragmented, with well over 100 operators, of which over half fit our target investment size of an enterprise value range of £2-5 billion (€2.32-5.80 billion). We have increased deal activity and greater availability of assets driven by significant consolidation and convergence. We believe this will continue over the coming years, creating fertile ground to both buy and sell assets and once again create shareholder value through fundamental business improvement”.
Zegona is currently in the process of selling its 21.44% stake in the Spanish operator Euskaltel to MasMovil.
MasMovil launched a tender offer on March 28 for 100% of Euskaltel and assuming the offer closes as expected Zegona will received around €428 million in cash for its stake.
Zegona has committed to returning £335 million to its shareholders following the sale, while Zegona management has agreed to increase its investment in Zegona by £4 million.
