EUSKALTEL GAINS IBEX PROMOTION

17 December 2019

EUSKALTEL gains Ibex promotion

The Technical Advisory Committee of the IBEX indices yesterday announced that Euskaltel S.A. had been promoted to the IBEX Medium Cap Index1. This decision reflects the increase in the value of Euskaltel, whose market capitalisation has grown more than 35% during 2019, reaching €1641m2. This performance makes Euskaltel one of the best performing shares on the Spanish market during 20193. Euskaltel's share price growth directly impacts the value of Zegona's shareholding in Euskaltel. As announced on 2nd December 2019, the value of Zegona's investment in Euskaltel and net cash balance was £1.41 per Zegona share, which was over 46% higher than Zegona's share price at that time4.

Eamonn O'Hare, Chairman and CEO of Zegona, commented: "Euskaltel's promotion to the IBEX Medium Cap Index is just reward for the improvements to the business initiated since José Miguel García became CEO in June 2019. As Euskaltel's largest shareholder, Zegona is fully supportive of Euskaltel's strategy to drive efficiencies in its existing business and to expand into the 85% of the Spanish telecommunications market where it is not yet present. We are pleased with the progress being made and congratulate the Euskaltel team on their recent promotion to the IBEX Medium Cap Index."

Enquiries

Tavistock (Public Relations adviser)

Tel: +44 (0)20 7920 3150

Lulu Bridges - lulu.bridges@tavistock.co.uk 

Jos Simson - jos.simson@tavistock.co.uk

IMPORTANT NOTICES

This announcement has been prepared in accordance with English law, the Listing Rules and the Disclosure Guidance and Transparency Rules and information disclosed may not be the same as that which would have been prepared in accordance with the laws of jurisdictions outside England.

The distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.

About Zegona

Zegona was established in 2015 with the objective of investing in businesses in the European Telecommunications, Media and Technology sector and improving their performance to deliver attractive shareholder returns. Zegona is listed on the standard listing segment of the Official List of the Financial Conduct Authority and the Main Market for listed securities of the London Stock Exchange, and is led by former Virgin Media executives Eamonn O'Hare and Robert Samuelson. Zegona is the largest shareholder of Euskaltel S.A. owning over 20%.

About Euskaltel

Euskaltel is the leading converged telecommunications provider in the North of Spain, with a network covering nearly 2.3 million households. It provides high speed broadband, data rich mobile, advanced TV and fixed communications services to residential and business customers under the Euskaltel, R Cable and Telecable brands. Euskaltel is a public company actively traded on the stock markets of Bilbao, Madrid, Barcelona and Valencia.

1 See IBEX announcement in Media News Room section of the Zegona website

2 Euskaltel share price €6.80 on 2nd January 2019 and €9.19 on 16th December 2019. 178.6 million shares issued and outstanding

3 Euskaltel would have been the fourth best performing stock within the IBEX Medium Cap Index had it been a member of this index since the start of 2019

4 As at 29th November 2019. As at 13th December 2019, the value of Zegona's investment in Euskaltel and net cash balance was £1.37 per share which was 25% higher than its share price of £1.095 per share on that date