LONDON (ShareCast) - (ShareCast News) - Zegona Communications confirmed on Wednesday it would be returning as much as £140m to shareholders in the form of a tender offer at a minimum price of £2 per share.
The communications and entertainment industry investor announced a return to investors was on the horizon after it sold its 15% stake in Spanish cable network, Telecable to Euskaltel SA for €701m earlier on in 2017.

Zegona said qualifying shareholders would be eligible to sell around 36% of their shares at a price of no less than £2 each under the tender offer, which it said would represent a premium of at least 19% to its current market value.

The offer was dated to close 5 October.

Marwyn Assets Management, Zegona's largest shareholder, signed an irrevocable undertaking to tender an offer of entitlement already, and the rest of the board was expected to follow suit.

Marwyn Value Investors, the parent company of Marwyn Assets Management released a separate statement confirming the tender offer.

"We continue to see good potential to drive further value growth both through our investment in Euskaltel and other investment opportunities. Euskaltel has a very strong market position, is highly cash generative and will benefit from the input and experience of Zegona management. In parallel, we are actively developing a number of new investment opportunities in the European TMT industry where we believe we can again successfully apply our innovative 'Buy-Fix-Sell' strategy," chairman and chief executive of Marwyn, Eammon O'Hare said.

With a targeted dividend payment of £9.8m, an equivalent of 0.05p per share, Marwyn, which owns 25.8% of Zegona, said its proceeds of the estimated £36.1m sale would be used to support its own growth plans.

As of 1250 BST, Marwyn Value Investors share prices had moved forward 3.57% to 168.56p and Zegona had seen a bigger 8.01% bump to 182.00p.

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