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Zegona Communications PLC
Oakley Advises Zegona On £251M Equity Fundraising To Finance The Acquisition Of Spanish Cable Operator Telecable For €640M
Completed Transactions - Zegona Logo
Sector:
Telecoms
Transaction Type:
Fundraise, Retained Clients
Date:
August 2015
Deal Value:
£251m

Oakley Capital Corporate Finance (“Oakley”), the independent corporate finance firm offering expert specialist advice across the TMT sector, has advised Zegona Communications (“Zegona” or the “Company”) on the placing of £251m of new equity with global Institutional investors.

The fundraising was undertaken to help fund the acquisition of Telecable de Asturias S.A. (“Telecable”), the leading quad play telecommunications operator in Asturias, North West Spain, for an enterprise value of €640m. Zegona has acquired Telecable from global alternative asset manager, The Carlyle Group (NASDAQ: CG), and Liberbank, using a combination of £251m of new equity, funds from Zegona’s recent £30m AIM IPO and a new debt facility. The transaction completed on 14th August 2015.
The Oakley team, comprising Chris Godsmark, Christian Maher, Victoria Boxall and Paul Howard acted as Joint Bookrunner on the deal.

Zegona was established by ex-Virgin Media executives including Eamonn O’Hare, the Company’s Chief Executive, with the objective of acquiring businesses in the European Telecommunications, Media and Technology sector with a ‘Buy-Fix-Sell’ strategy. Founded in 1995, Telecable is a TV, fixed and mobile telephony, broadband and advanced business solutions provider for the Asturias region in northern Spain. With more than 162,000 residential and corporate customers, the Company had revenues of €131 million and EBITDAof €63 million in 2014. The Zegona management believe the Telecable deal represents a compelling investment because of, among other factors, its market leading position, attractive dynamics in the Spanish telecoms market generally and strong cash generation.

Chris Godsmark, Oakley Partner, commented:

“It is just a year since we met with the Zegona team to discuss the potential for a UK quoted vehicle to deliver on the team’s buy-fix-sell strategy. It was transparent from the outset that they had a clear strategic vision. With the £30m IPO in the Spring, and the announcement of the Telecable deal, we have helped Zegona on the way to becoming a major player in European telecoms consolidation. We believe the management team will deliver superior returns for shareholders in the future.”

Oakley has announced, completed or agreed a record number of deals since the start of 2015, with 9 transactions including acting as Rule 3 Adviser to Telecity on the recommended £2.35bn cash and share offer from Equinix, the €250m agreed sale of German price comparison business Verivox to ProSieben and the €133m acquisition of Spanish mission critical communications operator Teltronic by Sepura PLC. Since its establishment in late 2007, Oakley has announced over 60 transactions with a total enterprise value of more than £9 billion.

For more information, please contact:
Chris Godsmark, Partner
Victoria Boxall, Senior Associate
Hannah Dodds
02077666908

*Completed by Oakley Capital Corporate Finance

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