Marwyn Value Investors has made a new investment today into Zegona Communications. They are paying £12m (about 6% of MVI’s NAV) for a 40% stake in the company. Zegona is listing on AIM. It will be run by two ex Virgin Media executives, Eamonn O’Hare (Chairman and CEO) and Robert Samuelson (COO). Eamonn was Chief Financial Officer at the Virgin Media Group, where Robert was the Director of Group Strategy, prior to its sale to Liberty Global.
The idea behind Zegona is to acquire businesses with an enterprise value of between £1bn and £3bn in the European TMT sector. Zegona will apply a “buy-fix-sell” approach to its purchases, targeting the delivery of attractive returns to shareholders with an expected average investment cycle of three to five years. The Zegona directors expect the European TMT sector to experience further consolidation over the coming years with changing market dynamics including superfast broadband, a growing appetite for digital services and convergence of fixed and mobile services creating multiple investment opportunities.
MVI : Marwyn makes investment in Zegona Communications