Zegona Communications plans to raise approximately 300 million euros ($321.3 million) through a share placing to partially fund its acquisition of Vodafone Spain. The UK-based telecommunications group will issue the shares at 150 pence, as previously announced. This price represents a significant premium over Zegona’s closing price on September 22 when the company first declared its intention to purchase Vodafone Spain, resulting in a suspension of its shares.
The deal, which qualifies as a reverse takeover, involves Zegona acquiring the Spanish unit of Vodafone Group for an enterprise value of around EUR5 billion. To secure the necessary funds, Zegona intends to elicit between EUR300 million and EUR600 million in equity from institutional investors at a price of 150 pence per share. Moreover, Zegona will obtain financing from debt of EUR4.2 billion, a revolving credit line of EUR500 million, and 900 million euros provided by Vodafone.
In addition to the share placing, Zegona is also giving shareholders the opportunity to purchase shares at the same price through the PrimaryBid platform in order to raise an additional EUR8 million.