Zegona Communications (LSE:ZEG) shares quadrupled in value after being readmitted to the standard list of the London Stock Exchange on Tuesday.
The readmission follows the successful completion of a 150p-per-share placing that raised €300 million (£262 million) for Zegona’s takeover of Vodafone Spain.
Zegona, which won the bid to buy Vodafone’s struggling Spanish unit for €5 billion, intends to finance the takeover mainly through debt.
The ’buy-fix-sell’ telecoms investor has also launched a separate €8 million PrimaryBid share offering to partially fund the acquisition.
Vodafone Group PLC (LSE:VOD) itself has committed €900 million in equity to finance the deal.
Deutsche Numis acted as global co-ordinator and joint bookrunner, with each of Canaccord, ING and UniCredit acting as joint bookrunners in the placing.
Though Zegona’s shares rallied up to the 150p offer price on Tuesday morning following the readmission, they have since fallen back 5% to 138.35p.
Vodafone’s chief executive Margherita Della Valle ordered the disposal of Vodafone’s lossmaking Spanish business as part of a wider shakeup of the underperforming telecoms multinational.
In today’s earnings call, Della Valle stated: “During the first half of the year, we have delivered improved revenue growth in nearly all of our markets and have returned to growth in Germany in the second quarter.”
“Vodafone's transformation is progressing” but “much more needs to be done”, she added.