Liberty Global plc (“Liberty Global” or the “Company”) (NASDAQ: LBTYA,
LBTYB and LBTYK) announced today an agreement to sell substantially all
of its international content division Chellomedia to AMC Networks Inc.
(“AMC”) (NASDAQ: AMCX). The assets being sold include Chello Multicanal,
Chello Central Europe, Chello Zone, Chello Latin America and Chello DMC.
In addition, Chellomedia’s stakes in its joint ventures with CBS
International, A+E Networks, Zon Optimus and certain other partners are
also part of the divestment. Liberty Global will retain its Dutch
premium channel business, which consists of its Film1 and Sport1
channels.
Liberty Global expects to realize cash proceeds for the above-described
assets that are approximately equal to the agreed upon enterprise value
of €750 million ($1,035 million).1 The consolidated assets to
be divested generated approximately €350 million ($451 million) of
revenue during the last twelve-months (“LTM”) ended June 30, 2013.2
Mike Fries, President and CEO of Liberty Global, said: “This is a great
transaction for all parties. Chellomedia is one of the largest
international channel groups with distribution to more than 390 million
households in 138 countries and I have no doubt that the management team
will continue to build tremendous value as part of AMC. For Liberty
Global, this transaction is attractive from both a valuation and
liquidity perspective. It also simplifies our business and allows us to
focus on our core markets and more strategic programming opportunities.”
The transaction is expected to close in the first quarter of 2014 and is
subject to limited closing conditions. The transaction is not
conditioned on any regulatory approvals.
Morgan Stanley acted as exclusive financial advisor to Liberty Global on
the transaction.
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 our ability to consummate the transaction
announced herein, the targeted closing date for the transaction and the
impact of the transaction on our operations and financial performance,
and other information and statements that are not historical fact. 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 and 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 largest international cable company with
operations in 14 countries. We connect people to the digital world and
enable them to discover and experience its endless possibilities. Our
market-leading triple-play services are provided through next-generation
networks and innovative technology platforms that connected 24 million
customers subscribing to 48 million television, broadband internet and
telephony services at June 30, 2013.
Liberty Global’s consumer brands include Virgin Media, UPC, Unitymedia,
Kabel BW, Telenet and VTR. Our operations also include Chellomedia, our
content division, Liberty Global Business Services, our commercial
division and Liberty Global Ventures, our investment fund. For more
information, please visit www.libertyglobal.com.
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The enterprise value is translated into U.S. dollars based on the
euro to U.S. dollar foreign currency exchange rate in effect as of
October 25, 2013.
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2 |
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The revenue has been translated at the average relevant foreign
currency exchange rates to the euro and U.S. dollar for the LTM
period.
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