UK-based Zegona Communications has confirmed that it has completed the sale of Spanish cable operator Telecable de Asturias, to fellow regional player Euskaltel. The transaction, which was first announced in May this year, was valued at EUR701 million (USD768 million), which comprised an enterprise value of EUR686 million and up to EUR15 million in deferred payment. The enterprise value consideration includes EUR187 million in cash, and 26.8 million shares in Euskaltel (equivalent to a 15% stake).
Eamonn O’Hare, Zegona’s chairman and CEO, commented: ‘When we acquired Telecable in 2015, we identified the clear opportunity for substantial value creation through combining the three independent cable operators in Northern Spain [note: Euskaltel previously acquired R Cable in November 2015]. This transaction turns that vision into reality, generating attractive returns for our shareholders and offering the potential for further significant value gains … Telecable was Zegona’s first investment, and the completion of this transaction demonstrates the attractiveness of our ‘Buy-Fix-Sell’ strategy. We continue to search for new investments and we see many opportunities where we can again apply our innovative strategy across the European TMT industry.’