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ZEGONA COMMUNICATIONS PLC ("Zegona")
12 FEBRUARY 2020
EUSKALTEL BRINGS VIRGIN BRAND TO SPAIN
· Virgin brand key component of plan to expand into 85% of Spain where Euskaltel is not present today
· Virgin is well known in Spain and used by more than 15 million telecoms customers worldwide
· Combination of Euskaltel's technical capabilities and Virgin's powerful brand will drive the creation of a leading national operator
Zegona is pleased to announce that Euskaltel today has signed a trademark licence agreement to use the Virgin brand in Spain to drive its National Expansion strategy. Zegona is the largest shareholder of Euskaltel, owning more than 20% of the company.
Zegona was established in 2015 by former Virgin Media executives Eamonn O'Hare and Robert Samuelson. Zegona's long-standing relationship with the Virgin Group facilitated discussions for Euskaltel to use the well-known Virgin brand for its national expansion across Spain.
The signing of this agreement represents a major milestone for Euskaltel. With improved wholesale access agreements already signed in December 2019, Euskaltel now has all the key elements required for its National Expansion strategy. Virgin will take Euskaltel into the 85% of the Spanish market where it is not present today. This will enable customers in these regions to benefit from great value, high quality quad-play services, leveraging Euskaltel's existing advanced capabilities. Using the Virgin brand will accelerate growth in this untapped market for Euskaltel.
Virgin is one of the world's most recognised and respected brands and has over 75% consumer awareness1 in Spain. It has a hard-earned reputation for delivering extraordinary customer experience and innovation, and a focus on changing business for good. Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow successful businesses in telecoms, travel, transportation, financial services, leisure, entertainment and health. Currently, there are more than 60 Virgin businesses in 35 countries and Virgin has over 15 million telecoms customers worldwide. Key countries include the United Kingdom, the United States, France, Australia and various Spanish-speaking countries such as Mexico, Colombia and Chile.
The Virgin brand will coexist alongside Euskaltel's three established brands; Euskaltel, Telecable and R, which will continue to provide market-leading services in each of their respective regions. Euskaltel believes the combination of its strong existing regional brands with Virgin used on a national basis will bring excellent opportunities for growth.
Eamonn O'Hare, Zegona's Chairman and CEO, commented: "As Euskaltel's largest shareholder, we are looking forward to working with the Virgin Group once again to create a leading national telecoms operator in Spain. Euskaltel already has three strong brands in the North of Spain, and we are very excited by the opportunity which Virgin gives to take Euskaltel into the 85% of the Spanish market where it is not present today."
1 Source: Research Now Ltd market research
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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 led by former Virgin Media executives Eamonn O'Hare and Robert Samuelson.
Euskaltel S.A. ("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 traded on the stock markets of Bilbao, Madrid, Barcelona and Valencia.
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. 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.