Entrepreneurial Focus

We have considerable freedom in the projects we pursue and the ways we create value. Zegona has a long-term perspective and, as a public company, its shareholders can readily realise value at any stage through the improvement and transformation journeys of the businesses we own. 

This makes Zegona fundamentally different from private equity businesses, most of which work within a short- to medium-term timeframe. This also permits a focus on fundamental business improvements that are value-accretive rather than relying on high leverage and valuation multiple expansion. We are also able to act quickly on acquisition opportunities while maintaining financial discipline. This is especially attractive to potential sellers and a key differentiator.

The acquisition of Vodafone Spain reflects this openness to identifying opportunities, with a detailed plan already in place to substantially improve the operations, customer service and financial returns from the business.

Attractive Market Dynamics

The changing market dynamics in the TMT industry create multiple investment opportunities, with strong tailwinds including: 

• Data consumption is growing strongly with customers willing to pay for speed and reliability, driven by changing customer requirements in different markets.
• Customers are combining mobile and fixed services, driving significant growth in customers that are more valuable and more loyal, alongside improved economics for converged players.
• The sector has seen significant consolidation focused on improving fundamental economics, increasingly within their core regions, delivering cost reductions and price repair to rebuild margins while meeting regulatory requirements and strategic objectives.

Experienced Management Team

Our management team has a proven track record of delivering strong business performance and investor returns (see our Euskaltel case study). Following this success, in 2023, we were able to gain the trust and support necessary from Vodafone and the financial markets to negotiate and arrange funding for the acquisition of Vodafone Spain.

The team has extensive real-world experience in senior operational roles in large public telecommunications companies, and its interests are also strongly aligned with shareholders through a long-term incentive scheme that links remuneration directly to growth in shareholder value.