Marwyn Value Investors revealed its plans for the bulk of the money it raised the other day by selling down its investment in entertainment one. Marwyn is investing £55m in Zegona Communications to help fund that company’s acquisition of Telecable Capital Holding. This deal will take Marwyn’s investment in Zegona up to £67m. They will have a 23.8% stake in the company and it will account for about 28% of MVI’s assets.
Zegona is placing a total of 167.3m new ordinary shares at a price per share of 150 pence, equivalent to approximately £251m. If issued, the placing shares (including the shares to be owned by the Master Fund) are expected to be admitted to the London Stock Exchange’s AIM market and commence trading at 8.00 a.m. on 14 August 2015.
Zegona was established in March 2015 under the management of Eamonn O’Hare (Chairman and Chief Executive Officer) and Robert Samuelson (Executive Director and Chief Operating Officer) with the objective of acquiring businesses in the European Telecommunications, Media and Technology sector with a ‘Buy-Fix-Sell’ strategy. The proposed acquisition of Telecable is consistent with Zegona’s investment strategy. Mark Watts, joint Managing Partner of Marwyn Capital LLP and co-founder of the Marwyn Group, is a non-executive director of Zegona.
Telecable is the leading “quad-play” telecommunications operator in the Spanish region of Asturias, with more than 164,000 customers, offering television, broadband internet, mobile and fixed-line telecommunications services to residential and business customers. Telecable operates a network of over 2,400 km of fibre optic cable and 2,600 km of coaxial cable, reaching more than 450,000 homes across Asturias. The Zegona Directors believe that Telecable represents a compelling investment opportunity, driven by its market leading position and strong cash generation, coupled with attractive dynamics in the Spanish telecommunications market and Spanish economy more broadly.
MVI : Marwyn ups investment in Zegona