Zegona share price jumps after revealing details of £140m shareholder payout

Oliver Gill
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Zegona announced a deal to offload Telecable to Euskatel in May (Source: Getty)

Shares in FTSE 250 telecoms firm Zegona Communications jumped almost seven per cent after the firm confirmed a bumper shareholder payout.

Zegona will return £140m after confirming the sale of Spanish cable business Telecable.

The shareholder offer, of a minimum of £2 per share, represents 42 per cent of the Zegona's market capitalisation.

"We are also reconfirming our intention to pay £9.8m in dividends for 2017," said chief executive and chairman Eamonn O'Hare.

"As a result, Zegona will have returned 55 per cent of shareholders' initial investment."

Read more: Buyout firm Zegona books bumper profit from €701m Telecable sale

Marwyn, one of Zegona's largest shareholders and an original backer of Peppa Pig firm Entertainment One, signed up to the cash return. It plans to use the proceeds to repay its own investors around £36.1m.

Led by two former Virgin Media executives, Eamonn O’Hare and Robert Samuelson, Zegona seeks out European telecoms and media opportunities. It invests in companies and employs a "Buy-Fix-Sell" strategy.

It first announced it would sell Telecable in May to Basque firm Euskaltel retaining a 15 per cent interest in the firm.

Read more: Former Virgin Media execs swoop for Spanish outfit

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