UK telecom investor Zegona Communications has approved a capital enlargement of €114 million with the intention to purchase more shares in Spanish cable operator Euskaltel on the open market.

With the capital and a further €33 million in debt Zegona, who already has a 15 per cent stake, plans to acquire an additional 12.5 per cent to take over the company. Currently, the major shareholder is the savings bank Kutxabank with a 20 per cent stake.

Earlier this week, Orange declared it was out of the running for Euskaltel, and this has paved the way for Zegona to take control the operator – which seems destined to become the fifth largest telco in the country.

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Categories: Articles, M&A, Telco