London, Jan 19, 2026, 13:44 GMT — Trading ongoing.
- Zegona shares climbed roughly 2% to 1,570p during London trading
- The company repurchased 180,000 shares as part of its ongoing buyback program
- Investors are focused on how quickly capital is being returned and the rising costs of debt
Zegona Communications Plc (ZEG) shares climbed roughly 2% to 1,570 pence by 1344 GMT on Monday following news of another share buyback. The stock gained 30 pence from Friday’s close and fluctuated between 1,540 and 1,597.5 during the session. 1
Zegona’s buyback is key as it reshapes its capital structure following the Vodafone Spain acquisition. Investors are eyeing how fast the company can cut its share count without ramping up debt. Back in December, shareholders greenlit a plan linked to a €1.4 billion special dividend, partly used to pay down Vodafone financing, along with a significant drop in ordinary shares outstanding. 2
Zegona revealed its wider capital return plan in late November, announcing intentions to return cash to shareholders while allocating some proceeds to cut debt, following two fibre joint ventures tied to Vodafone Spain. It also set expectations to receive FiberPass investment proceeds by the end of Q1 2026. 3
On Monday, the company repurchased 180,000 ordinary shares at a volume-weighted average price of 1,547.75 pence. The highest price paid was 1,572.5 pence, while the lowest stood at 1,530 pence. A volume-weighted average price factors in trade size, giving more weight to larger trades. Zegona confirmed these shares will be cancelled, reducing the total ordinary shares outstanding to 233,801,302. 4
Buybacks might provide some price support, but for Zegona investors, the key is the per-share math: reducing share count can boost earnings per share—assuming the business keeps performing. Still, this buyback is a drop in the bucket compared to the total shares outstanding, so investors usually pay more attention to the ongoing pace.
Debt costs remain a key factor. Earlier this month, Zegona announced it had refinanced a €1.7 billion term loan B due in July 2029, securing an all-in interest rate of 4.35%—a 50 basis point cut in the margin. Chairman and CEO Eamonn O’Hare commented, “We’re pleased to report a further reduction in the cost of Zegona’s debt.” 5
Buybacks don’t alter the underlying operating risk. Zegona’s equity is still heavily linked to Vodafone Spain’s turnaround in a market dominated by Telefonica and MasOrange, who lead on pricing and fibre rollout. Any stumble in trading could swiftly refocus attention on leverage instead of capital returns.
Zegona’s buyback comes with a clear deadline: while the company can buy shares on the market up to €200 million, the program’s end is linked to when FiberPass proceeds arrive. If certain conditions are met, the buyback must stop by 31 March 2026. Investors will be closely monitoring future buyback updates and any news on those proceeds as that date nears. 6
