Zegona approves 400 million euro shareholder return plan

Zegona Communications, the British investment firm that acquired Vodafone España in May 2024, has approved a new capital allocation framework totaling 400 million euros for its shareholders. The plan consists of a 200 million euro ordinary dividend and a 200 million euro share buyback program.

The dividend, which corresponds to the fiscal year ending March 31, will be funded by free cash flow and is subject to approval at the annual general meeting. The share buyback program is an additional measure following the completion of a previous 200 million euro program.

CEO Eamonn O’Hare noted that the company's shares continue to trade at a ‘substantial discount’ compared to their intrinsic value and European telecommunications competitors. The company stated that this decision marks the end of the first phase of Vodafone España's transformation and reflects confidence in growing free cash flow following the reduction of leverage and debt costs.