Basque Telecom operator, Euskaltel, is coming under greater control by a London based telecom fund.
Zegona is upping its position to 29%, overtaking tainted bank, Kutxabank. Zegona entered the fray when its stake in Telecable was converted into shares in Euskaltel.
Euskaltel’ share price had been falling heavily causing disquiet in the London based outfit. While Zegona does have experienced individuals with more than a quarter of century of background in the sector ……….. as a firm, what practical experience does it have in actually running a telecom company?
Euskaltel offers services on the Cantabrian coast. One wonders about its future when 5G mobile telephony kicks in from 2020 in Asia and soon after in Western Europe.
Is Euskaltel able to upgrade to a mobile world of the Internet of Things ……. requiring massive investment…….. or is it going to prepared for a sale to a much bigger telecom operator …. and thus a profitable exit strategy for some astute investors from London ?
As the article below explains, Zegona came into existence a few years ago with a simple business model ……. search the crumbs of telecom entities missed or ignored by the whales ……. around 180 entities ……. move in …. with a Buy-Fix-Sell strategy …….
With PNV’s hands off approach and lack of strategic planning (or the market knows best) …. let us hope things turn out for the benefit not only for existing shareholders but also for the Basque Country and Asturias …….. this is an absolutely critical sector for the 2020s ….. part of the rationale for the current US led trade war against China is precisely the advent of 5G mobile telephony ……….. …….eventually, Euskaltel will be bought out by a large player …… (that ‘s just a guess but one cannot see it surviving in the 2020s with its current long-in-the-tooth business model more appropriate for the 2000s) …..
Who is Zegona? See here……
The link below highlights the 11% jump in today’s share price.
http://www.expansion.com/empresas/tecnologia/2018/10/19/5bc9792ce2704e932b8b45aa.html
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