ZEGONA'S MARKET VALUE PER SHARE

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ZEGONA COMMUNICATIONS PLC ("Zegona")

LEI: 213800ASI1VZL2ED4S65

2 December 2019

ZEGONA'S ASSETS HAve A MARKET VALUE OF £1.41 PER ZEGONA SHARE1

Zegona's principal asset is its ownership of Euskaltel, where it is the largest shareholder owning more than 20%. Euskaltel is the leading quad-play telecommunications provider in the North of Spain and is a public company actively traded on the stock markets of Bilbao, Madrid, Barcelona and Valencia. Zegona has been influential in driving changes within Euskaltel, leading to Euskaltel introducing a new strategic roadmap to drive efficiencies in its existing business and expand nationally into the 85% of the Spanish market where it is not yet present.

With Zegona's support, José Miguel García was appointed the new CEO of Euskaltel on 5th June 2019 and in Zegona's view is making strong progress in leading the implementation of the new Euskaltel Roadmap. Euskaltel's share price has responded positively and has increased by 21% since José Miguel took over as CEO2.

Zegona believes it is helpful for its shareholders to be aware of the development in the value of Euskaltel, and to understand what this represents in terms of value per Zegona share. At the current Euskaltel share price of €9.19, Zegona's holding in Euskaltel, together with its current net cash position, is worth the equivalent of £1.41 per Zegona share3. This value is over 46% higher than Zegona's current share price of 96p4.

Zegona's Board has been monitoring this metric for some time and is determined to take actions with the objective to close this differential. As a first step, it has decided to keep its shareholders regularly updated on the value of its ownership in Euskaltel and accordingly will until further notice publish what this represents in terms of value per Zegona share at least quarterly via RNS.

1 Assets comprising Zegona's ownership stake in Euskaltel, S.A. and net cash position as at 29th November 2019

2 Based on a Euskaltel closing share price of €7.57 on 5th June 2019 and €9.19 on 29th November 2019

3 Translated using the prevailing £/€ exchange rate of 1.1728. Does not include Zegona's other net assets. Zegona's other net assets, excluding the investment in Euskaltel and net cash, in the last interim financial statements for the six months ended 30 June 2019 was £3.7m (or 1.7p per share). No value for Zegona's Management and Core Investor incentive schemes was included in this figure

4 Zegona's closing share price on 29th November 2019

Enquiries

Tavistock (Public Relations adviser - UK)

Tel: +44 (0)20 7920 3150

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

Lulu Bridges - lulu.bridges@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.