Zegona Starts Exclusive Talks to Buy Telia’s Spanish Unit

  • Deal could be classified as a reverse takeover, Zegona said
  • Sweden’s TeliaSonera revived plans to sell Yoigo last year

Former Virgin Media executive Eamonn O’Hare’s investment company began exclusive talks to buy TeliaSonera AB’s Spanish unit, continuing a strategy of acquiring telecommunications businesses in the country.

The investment firm, Zegona Communications Plc, said Friday it has no agreement to buy the business, Yoigo, and that a deal may not be reached. A transaction could be classified as a reverse takeover, Zegona said in a statement. Telia confirmed its in talks with Zegona.

O’Hare and partners created Zegona with the goal of buying companies to subsequently restructure and sell them. Yoigo would complement Zegona’s Spanish broadband unit Telecable de Asturias SA, which it bought last year.

Sweden’s TeliaSonera revived plans to sell Yoigo after receiving interest from Spanish telecommunications provider Masmovil Ibercom SA as well as private-equity firms, people with knowledge of the matter said in October. A sale could fetch about 500 million euros ($564 million), the people said at the time.

Shares of TeliaSonera advanced 2.1 percent to close at 42.78 kronor in Stockholm. Zegona shares were suspended in London.

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