Zegona aims to double its current stake in Euskaltel, acquiring up to 14.9% of the operator after making a £225 million placing that will be put to its shareholders in December.
Subject to approval of the capital increase, Zegona will submit its offer for Euskaltel shares to regulator the CNMV.
Zegona currently holds a 15% stake in Euskaltel through its sale of Asturias operator Telecable to the Basque Country-based player.
Zegona chairman and CEO Eamonn O’Hare has previously said that the offer, which would take the UK-based investment outfit’s stake in Euskaltel to 29.9%, “underlines our belief in the future potential of the Euskaltel business” and added that Zegona saw opportunities where “our industry knowledge and experience could be valuable” to the company.
The acquisition of an additional 14.9% would see Zegona displace Basque Country bank Kutxabank as Euskaltel’s leading investor.
Zegona has an ambition to install new management at Euskaltel and to bring the Virgin brand to Spain to serve as a vehicle for Euskaltel’s expansion into regions of Spain outside its home markets of the Basque Country, Asturias and Galicia.
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