UK investment firm Zegona is expected to leverage its chief executive’s strong links to Virgin Group as it moves to position itself as the leading shareholder in Spanish cableco Euskaltel. Zegona chairman and CEO Eamonn O’Hare previously served as CFO at Virgin Media, and El Economista claims that Zegona will seek to introduce the Virgin brand and expand the cableco’s presence into other regions. The Euskaltel Group currently utilises three separate brands, namely: Euskaltel (Basque Autonomous Community), R Cable (Galicia) and Telecable (Asturias).
As previously reported by TeleGeography’s CommsUpdate, Zegona recently proposed a partial tender offer for up to 14.9% of Euskaltel, at a price of EUR7.75 (USD8.92) per share. Zegona – which acquired its 15% stake in the company following the EUR701 million sale of Telecable de Asturias to Euskaltel in July 2017 – will increase its ownership to 29.9% if the tender offer is accepted in full.
TeleGeography notes that Virgin was previously linked with an approach for Telia-backed cellco Yoigo back in July 2015; the mobile operator was ultimately acquired by Grupo MASMOVIL in October 2016.