Liberty Global Acquires a 12.65% Stake in Ziggo, the Largest Cable Operator in the Netherlands
Liberty Global, Inc. (“Liberty Global,” or the “Company”) (NASDAQ:
LBTYA, LBTYB and LBTYK) today announces that it has acquired 25.3
million shares in Ziggo N.V. (“Ziggo”) from Barclays Capital Securities
Limited at €25.00 per share (the “Purchase Price”), for a total
investment of approximately €632.5 million. As a result of this
investment, Liberty Global owns 12.65% of Ziggo, based on the shares
outstanding as of December 31, 2012.
Liberty Global considers the acquisition of this minority stake in Ziggo
as an attractive opportunity to make a strategic investment in a market
where it already enjoys a sizeable presence through its UPC Netherlands
subsidiary. The Purchase Price is also financially attractive given the
stock’s approximate 7.4% dividend yield, which is implied by Ziggo’s
expectation that it will pay €370 million of dividends during 2013.
Liberty Global will fund the acquisition of Ziggo shares with a
non-recourse margin loan and existing liquidity. As the transaction does
not result in Liberty Global obtaining a controlling interest in Ziggo,
no regulatory approvals are required.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding the transaction and the anticipated
consequences and benefits of the transaction, Ziggo’s expected
dividends, and the impact of the transaction on our operations and
financial performance. These forward-looking statements involve certain
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by these statements. These
risks and uncertainties include overall financial market conditions, any
material business or financial developments at Ziggo, the continued use
by subscribers and potential subscribers of Ziggo's services, as well as
other factors detailed from time to time in the Company's filings with
the Securities and Exchange Commission including our most recently filed
Form 10-K. These forward-looking statements speak only as of the date of
this release. The Company expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in the
Company's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
About Liberty Global
Liberty Global is the leading international cable company, with
operations in 13 countries. We connect people to the digital world and
enable them to discover and experience its endless possibilities. Our
market-leading television, broadband internet and telephony services are
provided through next-generation networks and innovative technology
platforms that connect 20 million customers who subscribe to 35 million
services as of December 31, 2012.
Liberty Global's consumer brands include UPC, Unitymedia, Kabel BW,
Telenet and VTR. Our operations also include Chellomedia, our content
division, UPC Business, a commercial services division, and Liberty
Global Ventures, our investment fund. For more information, please visit www.lgi.com.
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