Zegona Uses FiberPass Stake Sale to Boost Buybacks and Cut Debt

An announcement from Zegona Communications ( (GB:ZEG) ) is now available.

Zegona Communications has completed AXA’s purchase of a 40% stake in FiberPass, the Spanish fibre joint venture now owned 55% by Telefónica, 40% by AXA and 5% by Vodafone Spain, generating €0.4bn in upfront proceeds for Vodafone Spain. Half of the proceeds will fund a previously announced share buyback, while the other half will be used to cut debt, positioning the business to reduce net debt to about €3.2bn by March 2026 and reinforcing Zegona’s leverage and interest cost reduction targets, which are central to its revamped fixed network strategy in Spain and returns to shareholders.

The most recent analyst rating on (GB:ZEG) stock is a Buy with a £2300.00 price target. To see the full list of analyst forecasts on Zegona Communications stock, see the GB:ZEG Stock Forecast page.

Spark’s Take on GB:ZEG Stock

According to Spark, TipRanks’ AI Analyst, GB:ZEG is a Neutral.

The score is driven primarily by strong cash flow generation but constrained by high leverage and ongoing net losses. Technicals are supportive with a clear uptrend, though momentum indicators are stretched. Valuation impact is limited because P/E and dividend yield were not provided.

To see Spark’s full report on GB:ZEG stock, click here.

More about Zegona Communications

Zegona Communications is a UK-listed investment company focused on the European telecommunications, media and technology sector, aiming to acquire and improve underperforming assets to create shareholder value. Led by former Virgin Media executives, it expanded its footprint in 2024 by acquiring Vodafone Spain, a national provider of fixed, mobile and TV services to consumers, businesses and public entities in Spain.

Average Trading Volume: 868,509

Technical Sentiment Signal: Buy

Current Market Cap: £4B

See more data about ZEG stock on TipRanks’ Stock Analysis page.