Zegona Communications plc (LSE:ZEG) -- Strategic Turnaround and Asset Optimization | Alluvial Capital 2024 Q4

Leveraging Asset Sales and Operational Improvements for Value Creation

Apr 13, 2025

Summary

Stabilizing revenues and improved cash flow.
Progress in selling Vodafone Spain’s fiber-optic assets.
Potential for large shareholder distribution post-asset sale.
Shares trade at a significant discount to estimated fair value.
Multiple catalysts for continued value creation.

Alluvial Capital's Q4 2024 letter discusses Zegona Communications plc (LSE:ZEG, Financial) as a promising investment undergoing a strategic turnaround. The London-listed investment company is making significant progress in improving profitability and optimizing its balance sheet, particularly through the planned sale of Vodafone Spain's fiber-optic assets. Despite the positive developments, Zegona shares remain undervalued, presenting a compelling investment opportunity.

"The planned sale of Vodafone Spain’s fiber-optic assets is moving ahead nicely, with both deals expected to be completed in the first half of 2025. Following the asset sale, Zegona will pay down a substantial portion of its acquisition debt and will likely declare a large shareholder distribution." — Dave Waters, Alluvial Capital Management, Q4 2024 Fund Letter

Read full letter at gurufocus Alluvial Capital 2024 Q4 page.

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