Professional
Added to YB: 2026-02-27
Pitch date: 2026-02-02
ZEG.L [bullish]
Zegona Communications plc
+7.41%
current return
Author Info
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Company Info
Zegona Communications plc provides integrated telecommunications services in Spain. The company offers broadband, mobile, TV, voice, data, and other value-added products and services.
Market Cap
GBP 4.9B
Pitch Price
GBP 16.20
Price Target
25.00 (+35%)
Dividend
N/A
EV/EBITDA
6.24
P/E
-220.69
EV/Sales
3.18
Sector
Diversified Telecommunication Services
Category
value
Marrello Capital holding: Zegona Communications plc
ZEG.L (holding update): London-listed SPV acquired Vodafone Spain for €5B at 4-5x EBITDA in 2024. Mgmt (O'Hare/Samuelson) stabilized declining revs to low-single-digit growth, doubled unlevered FCF to €820M (23% margin). Fiber JV spin generated €1.8B (22x multiple), paid £1.62/share div extinguishing €900M vendor note, collapsed share count 67%. Shares up 10x to £16 since acquisition. Trading 9x unlevered FCF vs 11-12x peers. Near-term target mid-£20s (~50% upside) on €900M+ FCF, €3B net debt reduction. Potential €2B from upcoming RAN JV spin could double shares from here.
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